View more on these topics

Standard says S2P is &#39great Government giveaway&#39

Standard Life is calling the new state second pension the Great Government Giveaway, saying its terms are so generous it is a bonanza for “doctors&#39 wives”.

The loophole enabling professionals to claim a pension for their spouse was available under Serps but benefits would only amount to a few hundred pounds. S2P bumps up those benefits by thousands of pounds.

Under the new S2P being introduced on April 6, spouses employed on minimal wages will be able to claim a substantial state top-up pension without having to pay taxes or National Insurance. Anyone earning up to £3,900 can claim an S2P pension on earnings of £10,800.

As people earning less than £4,500 do not pay tax or NI contributions, Standard Life says this means that a very generous state pension can effectively be claimed for free. The same person would also be entitled to pay up to £3,600 in to a stakeholder plan and receive tax relief of £792.

S2P is intended to help people on low incomes. But Standard says those who are set to make huge gains from S2P are the wealthy, the same group it says is taking out stakeholder.

Senior technical manager John Lawson says: “People can employ their spouse in a minor role and they could qualify for a free state top-up pension without ever paying tax themselves. This is a great Government giveaway. The Government is missing its target market for stakeholder and it looks as if it is about to make the same mistake with state pensions.”


BDT Invest – The Establishment Investment Trust

Wednesday, April 3, 2002Type: Investment trust.Aim: Growth by investing in bonds, equities and cashMinimum investment: Subject to negotiation with stockbrokerMaximum investment: No maximumInvestment split: Cash 10%, bonds 40%, equities 30%, other20%Types of share: OrdinaryIsa link: NoPep transfers: NoRedemption date: NoneCharges: Annual 1%Commission: NoneTel: 020 7659 1302

London housing boom continues says index

London&#39s housing boom is fuelling its own demand, according to the latest London specific housing index. Evidence from Hometrack&#39s London Demand Index suggests the strong price rises in 2002 have encouraged further demand from buyers who do not wish to be left behind, or who expect more increases. This March has seen a price rise […]

Quilter Global Enhanced Income Trust suspended

Dealing in the Quilter Global Enhanced Income Trust has been suspended, with the trust&#39s management saying they do not expect any capital to be repaid to investors.The suspension, after the trust became insolvent, is a further blow to the split capital trust sector that has been under media scrutiny for cross investments in recent weeks.AITC […]

Surrender link for Widows

Scottish Widows has set up a link to the Association of Policy Market Makers&#39 website to help policyholder explore their options when surrendering endowments.Widows claims it is the first life office to offer such an initiative,which pre-empts the FSA&#39s move to make it a statutory duty for life companies to inform consumers of alternatives to […]


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