View more on these topics

Tories plan pension cash deal

The Conservatives may allow investors to take the majority of their pension fund as cash after securing a minimum income with an annuity.

Standard Life head of pensions policy John Lawson says the Tories are firming up plans to allow people to take their fund as cash as long as they secure a minimum income with an annuity which takes them above the means-testing threshold.

Lawson says: “If this goes ahead, you would have to buy an annuity, which provides an income of around £30 a week to ensure the state will not have to shell out for you. Then you can do what you like with the rest. To be able to do this, people will need around £30,000 to spend on an annuity. For most people, that is more than their entire fund but there are lots of people for whom that is a drop in the ocean.”

But Lawson expects the move to come with a tax charge of between 40-50 per cent, as is the case in Ireland where this is currently allowed.

He says: “It could be great for the Tories because if they allow people to take their money as cash when they retire, people will pay tax on the majority of their fund immediately rather than after 30 years. It could be mutually beneficial.”


Ringfence should protect assets

Advisers and product providers believe that Keydata being placed into administration should not create a repeat of the Lehman Brothers’ structured product debacle as assets are likely to be ringfenced.

Barry O’Dwyer

A career working with statistics seems logical for the son of a maths teacher. Prudential managing director for retail life and pensions Barry O’Dwyer says his father, a maths teacher and headmaster of the local school in County Galway, had him doing sums at a very early age.


Rights and wrongs

I have been an IFA for 25 years and I still get endowment complaints for business written over 15 years ago via ambulance-chasing companies.

Aifa launches business transition programme

The Association of Independent Financial Advisers has today announced the launch of its business transition programme, developed to help firms meet the demands of the retail distribution review.


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