View more on these topics

Tories pledge NI rebate to fund private pension

A Conservative Government would allow younger workers to opt out of

National Insurance to fund pensions privately.

In the manifesto, Time for Common Sense, the Tories also promise to end

compulsory annuity purchase at 75.

The pension proposals would allow people under 30 to rebate their NI

contributions into a personal pension or stakeholder.

The manifesto also contains several policies of direct relevance to the

financial services industry, including a pledge to abolish tax on savings

and dividends for low and middle-earners.

The pledge to abolish compulsory annuity purchase promises to raise the

temperature of the annuity debate.

Retirement Income Reform campaigner Oonagh MacDonald has attacked the

Government&#39s resistance to annuity reform. She said: “The Treasury has

raised all sorts of phantom objections to our proposed reforms,

particularly in the area of taxation.”

Tory DSS spokeswoman Jacqui Lait says: “Our proposals mean that under-30s

could, if they want, contract out of National Insurance and put between

£500 and £1,500 into their own pension provision. It needs to be

an approved pension scheme and could be stakeholder if they think it is a

good deal. They might also choose to see an IFA.”

Torquil Clark pensions development manager Tom McPhail says: “The only

people who have not kept up with the argument on annuity reform are the

Labour Party.

“Reform is long overdue. The Conservative pension proposal is an

interesting proposition.

Pension funding is something where individual ownership and responsibility

can only result in greater awareness of the issues involved. It might also

be something in which IFAs will be involved.”


Principality tracks the flexible market

Principality Mortgages’ tracker flexible mortgage has joined the 93 similar products on the market.It is available for loans of up to 90 per cent of valuation. For the first year of the loan it will run at 1.05 per cent lower than the Bank of England Base Rate, giving it a payable rate of 4.2 […]

Newcastle Building Society – Global Guaranteed Equity Bond (Issue 2) Tessa Only Isa

Wednesday, 16 May 2001.Type: Guaranteed equity bond.Aim: Growth linked to the FTSE 100, Nikkei 225 and Dow Jones EuroSTOXX 50 indices.Minimum-maximum investment: £1-£500,000.Term: Five years.Guarantee: Capital returned in full at end of term regardless of performance of indices.Return: Capital returned in full along with 85 per cent of the average growth of the indices.Closing date: […]

Dresdner&#39s Sheehan to join Jupiter UK team

Jupiter has poached UK equity income manager Paul Sheehan from DresdnerRCM to boost its UK specialist equity team. Sheehan will replace Edward Bland as the manager of the £51m Jupitergrowth & income unit trust this summer. Bland will move out of the retaildivision to focus on institutional funds. Sheehan has managed Dresdner&#39s UK equity income […]

Skandia looks for stakeholder alternative

Skandia has designed a group personal pension (GPP) as a competitor to stakeholder schemes.The GPP is part of the Multipension range, which deliberately avoids the one per cent capped charge of stakeholder schemes and the restrictions this can place on fund links.Instead, this GPP provides access to 222 funds from 28 fund managers, including Aberdeen, […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment