View more on these topics

Standard abandoning break-even ages for contracting back in

Standard Life is scrapping break-even ages as the criteria for deciding whether IFA clients should be advised to contract back in to the state second pension.

The life office says it is adopting critical yields instead. It believes giving a critical yield that investments must achieve to make contracting out worthwhile is a more accurate way of presenting the information to the client.

It says a simple age cutoff point based on age after which everyone should contract back in does not take account of clients&#39 attitude to risk.

Standard is expected to announce its annual contracting-out recommendations at the end of August.

But it says it will not be making a blanket recommendation that everybody should contract back in to the state system, as Axa did in June and HSBC did in March, believing it is IFAs&#39 responsibility to give such advice.

Senior technical manager John Lawson says: “A straight age cut-off is not precise enough. Axa and HSBC have more direct business and so are responsible for the advice but we will not be issuing blanket guidance to contract back in. The ultimate decision is between the IFA and their client.”


Julian Gibbs

The Far East excluding Japan is my nap selection for the best-performing sector over the next year.This is for several reasons. First, when the US economy recovers – and it looks likely to grow by nearly 4 per cent next year – the Far Eastern economies and stockmarkets will recover even quicker. Second, growth rates […]

NU&#39s Withers turns focus on 5% cap for suite

Norwich Union Life chief executive Gary Withers is reinforcing the firm&#39s stance on the proposed new Sandler investment range, suggesting that a 5 per cent initial charge cap, as currently used in Ireland, will get a lot of focus.Speaking to Money Marketing following the release of parent company Aviva&#39s interim results, Withers reiterated that NU […]

Meet the legal challenge

One of the major challenges facing organisations trying to build a financial advice brand is how to achieve a consistent quality of advice and documentation across many hundreds of registered individuals.This can be a problem particularly in a network situation where there are underlying corporate members each with their own procedures and practices.Last week, I […]

Standard Life cuts bonuses

Standard Life has again cut its bonuses, reducing payouts by an average of 6 per cent.This means a £50 a month 25-year with-profits endowment policy, is now worth £69,386 down from £75, 984. This represents an annual return of 10.7 per cent on total premiums of £15,000. There is to be no change to annual […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm