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Tory leader blames price cap for lack of advice

Pension providers are losing money on every stakeholder scheme they sell, said Conservative leader Iain Duncan Smith in a hard-hitting speech attacking the Government&#39s flagship pension last week.

Entering the pension fray for the first time, Duncan Smith said savers are not getting the advice they need when they buy a pension, blaming stakeholder&#39s price cap.

He said only 100,000 stakeholder policies have been sold to the target market of 2.5 million people, with another 800,000 policies sold to the wealthy or those with existing pensions. Duncan Smith warned that the country faces a choice between accepting that there is a generation of future pensioners heading for poverty and diverting more public and private resources to funding pensions.

He said: “Many people&#39s expectations of a prosperous retirement are being dashed. Unless something is done about it, millions more pensioners are going to spend their retirement dependent on means-tested benefits.”

Scottish Life head of pensions strategy Steve Bee says: “I think it is about time pensions were treated more seriously at the national level. The Conservatives have indicated at least at the highest level of their party that they are taking pensions seriously.”


Second thoughts

This week I would like to explore three ideas on the state second pension, targeting protected rights funds and protection benefits on pension plans. At first glance, these ideas may not appear to be massive opportunities but, if managed as a concerted campaign, they can really give your business a boost. State second pensionFor Scottish […]

ABI calls on MPs for £500m tax breaks to fund advice

The Government should fund financial advice in the workplace to the tune of £500m a year by providing tax incentives to employers which offer their staff access to IFAs, says the ABI.In a speech to the all-party Parliamentary group on insurance and financial services this week, ABI director general Mary Francis outlined an action plan […]

Resilience tests eased again amid volatility

The FSA has again eased the resilience tests for life insurance companies to avoid forcing them to sell shares in a declining market.Life companies have had to maintain a cushion to withstand a 25 per cent fall in equity prices. But they will now be able to take a three-month smoothed average from the FTSE […]

Half of workers failing to save for retirement

Almost half the UK workforce are not contributing to a pension, says the Consumers&#39 Association.A CA survey shows that 46 per cent of workers are not contributing to a pension scheme. The CA says this highlights the gap between the retirement income that consumers expect and what they are on target for.The CA&#39s findings are […]

Key themes for 2017

Capital Market Notes, December 2016 Dave Lafferty, chief market strategist at Natixis Global Asset Management, assesses the accuracy of his 2016 outlook and provides his thoughts and outlook for 2017. Click here to read the full article


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