The Pensions Policy Institute says business leaders are wrong to suggest that the Government’s agreement with unions over public sector pay will have to be funded by higher taxes.The body, which is an independent charitable think-tank which gives non-party pol- itical comment in the field of pensions, has issued a briefing note contradicting the views of many, including CBI director general Digby Jones, suggesting that the taxpayer will lose out because of the agreement. It says the agreement in October did not change the fact that expenditure on unfunded public sector benefits is expected to increase from 1.5 per cent to 2.3 per cent over the next 30 years, largely due to improved longevity and increasing number of workers who have had strong salary growth in recent years. The PPI says the proposed reforms were expected to lead to savings of 13bn over the next 50 years which the agreement announced by DTI secretary Alan Johnson confirmed rather than altered. Therefore, the PPI says, there is no reason to believe that the tax bill should go up as a result. It says 85 per cent of the savings were always intended to come from a rise in pen-sion age for new entrants and the remaining money can be found through benefit cuts or increased member contributions. The PPI says Government communication on the issue has not helped, with confusion surrounding pension age and retirement age clouding the debate. PPI director Alison O’Connell says: “The perception that this means a growing divide between public and private sector pension arrangements is not helpful for pension policy more generally.”
Planning for his retirement brought the host of television’s They Think It’s All Over down to Earth, when he was so impressed by the mortgage advisory firm that he joined it as sales and marketing director, says Andrea Tryphonides.
Invesco Perpetual fund manager Neil Woodford is celebrating 15 years at the helm of the firm’s flagship income fund.Woodford, who is one of only 30 managers in the UK with a 10 year track record, has delivered 775.5 per cent growth for his investors over that period. He warns that the UK economy is slowing, […]
Transfer analysis shows that investors face massive losses in calls on Pension Protection Fund
Scottish Widows Investment Partnership has poached fund manager Alix Stewart from Gartmore to run its corporate bond plus portfolio. Stewart ran Gartmores corporate bond fund in which time it delivered top quartile returns and was A-rated by Standard & Poors.
Paul Casson, the manager of the Artemis Pan-European Absolute Return Fund, expects to benefit from a (patchy) recovery in Europe and more profit warnings in 2016.
- Top trends
- Top trends
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
The Financial Services Compensation Scheme will automatically compensate hundreds of clients of a collapsed discretionary fund manager, but other investors will have to wait another five months to get their money back. London-based Beaufort Securities has been investigated by both the FCA and US authorities. An indictment from the US Department of Justice alleges that […]
Fiducia managing director on ‘good old-fashioned’ customer service in the digital world Anthony Scott is adept in the art of communication. As an adviser and a novelist (he has written the novels ‘On Ashover Hill’ and ‘The Birthday Gift’) it is crucial for the Fiducia Group managing director to engage and build a rapport with […]
The FCA has reiterated its warnings that advisers outsourcing defined benefit transfer advice to firms with relevant qualifications cannot divorce themselves from responsibility for the eventual recommendation. While existing FCA rules require additional qualifications to advise on DB transfers, and the FCA has written to all firms who have DB transfer permissions as part of […]