The recent lack of action over Government employees’ retirement age simply reflected a decision being ducked. I hope that Adair Turner is not sensitive because the Government will avoid any difficult problem that was previously the preserve of the pension actuary.The change to the retirement age was not an option, especially as the state pension may go to 67 or 70 in the next year or so. I am not saying there is any magic in age 65 and this is shown in why it was chosen in the first place. Kaiser Wilhelm was looking for a way to rid himself of some troublesome individuals in his govern-ment. An aide suggested he retired them and proposed 65. In the 1930s, the US government wanted to get more of the younger men back to work and picked 65 when the German story was relayed to them. The question I have is whether retirement is really necessary. I have stopped asking people when they want to retire, moving on to ask when do they plan to retire. After all, the former will simply elicit the response, as soon as possible. I now ask clients when they plan to do something different. One US planner uses the phrase “How old would you be if you did not know how old you were?” This approach follows the concept that two people of the same age can be completely different in activities and outlook. We need to encourage the public to move to more realistic levels of pension contributions. Most 30-year-olds are paying more for gym membership than they do towards pensions. The Government can help by being more direct and explain that S2P will die away and the state basic pension move to affluence-testing. When the public realise taking control of your own pension funding is the way forward, so much the better.
Nicola York finds that IFAs believe the endowment compensation saga still has a long way to go as the ambulance-chasers sound the alarm bells
SG Asset Management has opened its US-run fund of hedge funds range to UK investors for the first time. The firm runs 1.14m of hedge fund money in up to 70 hedge funds including access to a number of closed hedge funds through the teams contacts. Targeted returns are between 6 and 8 per cent […]
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.
James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist
The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Another investment manager offering enterprise investment schemes has alerted clients of a 10 per cent drop in value for one of its portfolios following new Mifid rules. Mifid II, which came into force on 3 January, requires firms to notify clients when the overall value of their portfolio, relative to its value at the beginning of each reporting […]
The recent enquiry by the work and pensions select committee has reignited the debate about the future of collective defined contribution schemes. Whether these sort of schemes can be incorporated into the current UK pensions landscape is a moot point. Let’s consider some of the arguments for and against CDC. First of all, it is […]
Retirement interest-only mortgages are set to become more popular following the FCA removing hurdles to selling them. The regulator sees RIO mortgages as a possible aid to the waves of maturing interest-only loans with no repayment strategy. However, the FCA also wants RIO mortgages to be sold more widely, for example as an additional option […]