View more on these topics

Tory MP points to £500bn liabilities on public schemes

Unfunded liabilities for public-sector pensions have exploded to £500bn, claims Conservative Shadow Treasury Chief Secretary Howard Flight.

At the Pensions in Crisis conference, Flight attacked Government pension policy and warned that private provision is going backwards.

He criticised the Government&#39s target of reversing the 60 per cent state and 40 per cent private provision split of pensions. Flight said there is a direct corollary between the £5bn annual tax on pension funds since 1997 and the accelerating closure of final-salary schemes.

He said the proportion of recently retired pensioners with an income from an occupational scheme has dropped to 59 per cent from 67 per cent since Labour came to power.

Flight hinted that Conservative policy is likely to embrace some form of universal pension for older pensioners around the level of the minimum income guarantee to tackle the spread of means-testing.

Flight said: “Off-balance-sheet unfunded Government liabilities for public sector pensions have ballooned to approximately £500bn. This is like an Animal Farm situation where those in Government have a wonderful time. I am surprised how tolerant the public have been.”

National Association of Pension Funds chief executive Christine Farnish said: “My children will not be able to get final-salary cover in the same way my generation could unless you work in the public sector.”

Recommended

FSA throws new light on financial healthcheck

The FSA has unveiled plans for a CD-Rom-based generic financial healthcheck to help consumers make decisions ranging from whether they should save for a washing machine to increasing pension contributions.At a Treasury seminar this week attended by providers, trade bodies, IFAs and representatives from the voluntary sector, FSA managing director John Tiner said the regulator […]

In trouble with the police

I read with interest the letters from Keith Lewis, Julian Stevens and Lorna Bourke&#39s article in Money Marketing recently.We are being bounced from pillar to post at the whim of people who do not really understand the role of the financial adviser, whether independent or tied.I feel we are becoming more and more like the […]

82% back Sofa-LIA merger

An overwhelming majority of IFAs would like to see the LIA and the Society of Financial Advisers merge.The Money Marketing/ One Account State of the IFA Nation poll found that 82 per cent backed a merger and only 16 per cent wanted the two organisations to remain separate and 2 per cent did not know.The […]

Shadow widens over taxpayers

The approach of the end of the tax year provides opportunities for taxpayers to maximise the use of personal allowances, reliefs and exemptions for the current year.Now is also a good time to lay plans for tax reduction over the coming tax year, at least to the extent that the tax rules are not expected […]

China: growth defence or another debt-fuelled boom?

By Douglas Turnbull, Head of Chinese Equities at Neptune Following recent stimulus efforts from Beijing, Neptune’s Douglas Turnbull examines how the government’s long-term reform agenda can be balanced with supporting growth and addressing structural challenges, and the investment opportunities arising from this.Click here to read more Important information: Investment Risks Neptune funds may have a […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com