View more on these topics

Which? claims ABI&#39s contracting-out factsheet &#39implies serious concerns&#39

Six million pension policyholders are to receive a factsheet aimed at helping them decide whether to stay contracted out or rejoin the state second pension.

The factsheet, produced by the ABI and Aifa, will be sent out by life and pension companies as well as IFAs over the next three months.

But Which? magazine has criticised the way the campaign places the responsibility for contracting out on the back on the consumer and claims it implies there are serious concerns about contracting out.

It is asking the FSA to conduct full market analysis to determine if there has been significant failure in this area.

The factsheet suggests consumers should review the decision to stay contracted out each year and warns that contracting out does not necessarily provide a bigger pension than staying in the state second pension. It explains how the decision should be based on a customer&#39s preference for state versus private provision and the added flexibility that contracting out provides on death benefits.

Aifa director of policy Fay Goddard says: “The change in basis of the future of pensions post-simplification has compounded to make giving advice on contracting out extremely difficult. Individuals have to accept some responsibility for their decisions.”

Which? principal researcher Tereza Fritz says: “That these factsheets are to be distributed via insurance companies and IFAs to inform customers who have been sold pension contracting-out products in the past can only imply the ABI has serious concerns about those people who are contracted out.”


Cofunds overpays £1m to investors

Around 1,000 investors in the Threadneedle strategic bond fund have been asked to return a total of more than £1m after a computer error by fund supermarket Cofunds. The error meant that investors were paid 100 times more income than they were entitled to from the £350m corporate bond fund. It occurred after a decimal […]

Too much regulation will drive poor from market, says Willetts

Shadow Work and Pensions Secretary David Willetts has warned that any further increase in FSA regulation will leave the poor excluded from mainstream financial services and widen the poverty gap. Speaking at a National Consumer Council fringe meeting at the Conservative party conference this week, Willetts slammed Government moves to extend regulation into areas such […]

Ritchie exposes dangers of automatic enrolment

Automatic enrolment of new employees into occupational pensions could lead employers to seek ways of cutting contributions to reduce overall costs, warns Scottish Equitable pensions development director Stewart Ritchie. Research by the NAPF has shown that auto-enrolment typically increases employee take-up from 60 to 90 per cent. However, the chairman of the Employer Task Force […]

Pioneer Alternative Invstments – Momentum AllWeather Strategies Fund

Type: Multi-manager fund of hedge funds Aim: Growth by investing in hedge funds Minimum investment: Lump sum $25,000 Investment split: 100% in hedge funds Place of registration: Bermuda Charges: Annual 1.5%, performance fee 10% Commission: Initial up to 5% Tel: 0207 190 2090


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