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The boss of Richmond House Wealth Management responds to Money Marketing columnist Paul Lewis’s latest article that questioned the effect of pension freedoms I am in the majority of advisers in that I am still, just, in my 50s. I therefore grew up with the Man from the Pru calling monthly to collect premiums, got […]

Andrew Bailey BBA Conference 2012 480

FCA chief picks up £75,000 bonus

FCA chief executive Andrew Bailey received a £75,000 bonus for 2017/18, the regulator’s accounts show. Part of the bonus has been deferred and will be paid in 2019. The portion of the bonus already received has been donated to the FCA’s staff charities, Richard House and the Alzheimer’s Society. The bonus is a £10,000 increase […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. I voted yes ~ but with qualifications:-

    1. What will be the value of each voucher? A token fifty quid or even twice that won’t cover it. Perhaps redemption of each voucher should be on the strict understanding that those applying for one will be required to pay an equal amount from their own resources.

    1. Who will fund such a scheme? If it’s the adviser community, that’ll constitute yet another levy and I wouldn’t go along with that.

    2. Advisers will need certainty as to how quickly and efficiently such vouchers can be redeemed because, if it takes several months rather than couple of weeks, many advisers will refuse to continue to participate and the scheme will quickly founder.

  2. Richard Clinton Green 25th July 2018 at 1:06 pm

    It would create a huge cost preparing and despatching the vouchers and probably only about 25% would reply who would probably have asked for advice in the first place. People have to want advice to get it in the first place and just sending a voucher is not sufficient incentive.

  3. Of course, if someone with deep pockets like SJP did this, the IFA community would squeal like stuck pigs.

    The fact that they don’t is suggestive that it’s unworkable or – more likely – economically unjustifiable.

    • Julian Stevens 27th July 2018 at 9:23 am

      But the fact remains that too many people aren’t taking advice. As a result, they’re either locking into an annuity based on a (possibly much) lower rate than could have been obtained in the OM, particularly if they have health issues, or they’re choosing IDD with no idea how to select an appropriate asset allocation and quite possibly milking their fund too hard. Also, they may well do nothing with their TFC other than stick it in the bank and then spend it.

      Good advice can achieve much better outcomes (we all support that don’t we?) and a properly thought out voucher system is likely to encourage people to seek it out. It needn’t be very complicated or costly either.

      That said, one wonders how many people even know about, let alone have taken advantage of, the advice allowance. My guess is very few, though I don’t know for sure.

      Old contracts, of course, cannot facilitate partial withdrawals but, as I have suggested, this could be overcome by a system whereby providers loan the allowance and recover it, with a modest admin/interest charge, when the policy is eventually vested.

      So, with qualifications, we should support the idea of a voucher system.

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