View more on these topics

Pru on hunt for buys as it bids to be Goliath of the industry

The Government has revealed radical plans to subsidise the low-paid to


stay in occupational pension schemes.


The move will ensure the low-paid do not stop contributions and rely on


the state.


It has been welcomed by the National Association of Pension Funds and


pension providers.


The NAPF has repeat edly warned the Government about the damage its


pension reforms could do to exist ing schemes.


The Department of Social Security set out the plans in its consultation


document for the Serps&#39 replacement, the state second pension (S2P), this


week.


But Scottish Equitable is warning the absence of details on how rebates


will be calculated, whether flat-rate or age- related, is a “glaring


omission”.


Under the plans, people earning less than £9,500 a year will receive a


top-up via the S2P to stay in their existing scheme.


The paper sets out two possible options for contract ing out. The first


outlines an S2P top-up for those earning less than £9,500.


The second option is to top up S2P for anyone earn ing below £9,500 and


ext end that top-up to those in occupational or personal schemes to those


who earn less than £21,600.


Pensions minister Jeff Rooker says: “The paper directly addresses the


position of people on lower earnings who might be better off in the state


scheme rather than in a private pension scheme.”


Liberal Democrat soc ial security spokesman Steve Webb says: “Finally, the


Gov-ernment has woken up to the issue of people on low earn ings opting out


of occupat- ional schemes.”


Scottish Equitable pensions development manager Steve Cameron says: “By


focusing on the issues for salary-related schemes, the proposals omit any


discussions over whether personal pension and stakeholder rebates will


continue to be age-related. If not, this is bad news the older you get.”

Recommended

Cornhill becomes mortgage super-broker

Cornhill Life is to become a mortgage superbroker as it fights to survive the low margin stakeholder environment. General manager life Ian Reed says the company has decided to become a niche player specialising in mortgages because it is “the one area where customers still need advice”. He is also concerned Government charge capping on […]

C&G wins IFA accolade

Cheltenham & Gloucester has won a fifth consecutive five-star rating, awarded by Aifa. More than 2,000 IFAs voted in the annual survey, which ranks mortgage lenders and other product providers on a wide range of service criteria. C&G was deemed to provide the best all-round service.

Experts claim new pension too complex

Government plans to encourage low earners to stay in their occupational schemes have been attacked as too complicated by industry experts.Legal & General pensions strategy director Adrian Boulding claims plans to top-up those earning less than £9,500 fail a simplicity test. Many believe the move will add far too much red tape.

Economists predict no change on interest rates

Most economists predict the Bank of England will hold interest rates over the next week.A Reuters survey of 35 economists found more than half believed the Monetary Policy Committee, which makes decisions on rates, will leave them unchanged. Bank of America spokesman Rob Hayward, said: “Since there hasn&#39t been any untoward news on inflation and […]

Global energy: positioning for a recovery in the oil price Š

Richard Hulf explains how he and John Dodd have positioned the Artemis Global Energy Fund and where they are finding opportunities. Richard explains how he and John are changing the complexion of the fund to focus on the most efficient oil producers. As he tells journalist Alexis Xydias, in this environment of lower prices, he […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment