LV quits the annuity market: experts say it was inevitable November 16, 2016 LV is the next big insurance name to flee the enhanced annuity market with immediate effect. With annuity rates plummeting as the lower-for-longer interest rate environment persists, the announcement follows the earlier news that the insurer was reviewing its annuity operations. Read more: Binning the government's annuity initiative: Here's what the experts think “The writing was on the wall," [...]
Swathes of pensioners are suffering from buyer’s remorse after cashing in pensions November 15, 2016 Tens of thousands of savers are blissfully unaware of the risks of drawing cash lump sums from retirement savings according to research released today. As part of former chancellor George Osborne's push to give Britain's retirees greater pension freedoms, a tax-free lump sum of up to 25 per cent was introduced in 2015. Read more: Enthusiasm for Osborne's [...]
The FCA confirms final rules on capping early exit pension charges November 15, 2016 The City watchdog has announces its final rules on capping early exit charges for pensions. The Financial Conduct Authority (FCA) said today that from 31 March next year, early exit charges will be capped at one per cent of the value of existing contract-based personal pensions, including workplace personal pensions. Early exit charges that are [...]
Aviva warns that current saving levels are not sufficient November 15, 2016 Britons need to be saving a whopping six times more than the minimum levels introduced by the government, according to the UK’s largest general insurer. Aviva said that the British public should be setting aside 12.5 per cent of their salary to save for old age. This compares with the current minimum requirement of two per cent under [...]
The Pensions Regulator rejects claims it was “too heavy-handed” in dishing out fines November 14, 2016 The Pensions Regulator (TPR) has lashed out at claims that nearly all the businesses that challenged auto-enrolment fines had them overturned. A report by payroll platform Paycircle suggested 82 per cent of businesses that pushed back on penalties imposed by TPR had them either "revoked, substituted or varied" during the last quarter. However, TPR condemned the analysis. A spokesperson said: It [...]
What the Donald Trump win means for your pension pot November 9, 2016 Given all the excitement this morning, your retirement funds might be the last thing on your mind, but you might want to take a moment or two to ponder your pension after all. The fallout from Donald Trump's election win might call for some careful thinking about pension pots, industry experts have warned. Trump's somewhat [...]
BMW workers vote in favour of strikes at UK factories over final salary pension closure November 8, 2016 The number of Minis and Rolls-Royce cars rolling off the production lines in the UK could be considerably disrupted after thousands of workers balloted in favour of strike action. BMW, which owns the two iconic brands, is planning to close its UK final salary pension scheme. Read more: Unite ready to fight BMW over pension changes A raft of [...]
Sainsbury’s to reveal how much its pension scheme has grown over the last six months November 6, 2016 Sainsbury's pension scheme deficit is expected to have ballooned by up to £900m over the last six months when the company releases its interim results on Wednesday. The supermarket's pension hole stood at £390m in March but analysts are predicting that a chasm will have developed. Market expectations are that the deficit will be between £900m and £1.3bn. Read [...]
MPs want to scrap the pensions triple lock to help millennials November 6, 2016 A group of top MPs have called on the government to scrap the favourable triple lock on state pensions because it favours the baby boomer generation over struggling millennials. The MPs said the promise to guarantee the state pension with a yearly rise in line with either inflation, average earnings or 2.5 per cent, whichever [...]
Pensions Regulator steps up probe into Sir Philip Green November 2, 2016 The Pensions Regulator (TPR) has tonight intensified its investigation into Sir Philip Green as it seeks to end the crisis engulfing the retirement scheme of collapsed retailer BHS. Lesley Titcomb, the head of the pensions watchdog, announced late on Wednesday that TPR is to escalate its enforcement action as it seeks redress for 20,000 BHS pension scheme [...]