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Turner’s scheme to lead to massive shake-up for pension providers

Adair Turner’s pension commission is expected to recommend a 7 per cent compulsory contribution scheme for employers which will cause a massive shake-up for pension providers.

A key feature of the National Pensions Savings Scheme will be that employers need to offer a scheme of equivalent value in order to opt out.

On a 7 per cent contribution, the most pension providers would be able to charge is 0.3 per cent, while employers would need to up equivalent stakeholder contributions to around 9 per cent of salary with a 1 per cent charge to avoid the scheme, which experts believe would put huge downward pressure on prices.

The scheme would be comprised of 4 per cent employee contributions, including 1 per cent tax relief, and 3 per cent employer contributions.

Employees will be able to pay up to 16 per cent of their salaries into the scheme which is modelled on the Swedish scheme and US Thrift model.


Cazalet tells MPs that Standard’s woes are due to bad management

Independent insurance consultant Ned Cazalet has told a Parliamentary comm- ittee that previous bad management at Standard Life is to blame for its capital problems and not its mutual status. Questioned at the all-party Parliamentary group for building societies & financial mutuals about why Standard needed to demutualise, Cazalet said it was a flawed argument […]

Retirement Plus introduces hybrid equity release

Retirement Plus is offering a hybrid equity-release product backed by property giants British Land and Delancey. As revealed by Money Marketing in July, the product, called Property Plan, is a hybrid of a home-reversion plan, which means the client co-owns the property with the provider rather than the provider owning the property deeds outright. The […]

ABI and EEF issue joint pension reform statement

The directors of the ABI and manufacturers’ organisation EEF have issued a joint statement on pension reform calling for ‘soft compulsion’ on pension contributions by employers.The statement issued by ABI director Stephen Haddrill and EEF director general Martin Temple on the eve of the Turner report, says the government now faces a unique opportunity to […]


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