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“The major change is the use of wraps as investors simply view their Sipp as another way of investing” |
The golden carrot for serious savers
For some years, industry commentators have voiced concerns that high net worth individuals (HNWIs) are likely to see any benefit from pension saving disappear as the government seeks to squeeze more money out of the higher paid and into the exchequer. The talk last year was of tax relief being limited to the basic rate (see http://bit.ly/tax_cap) and it would appear the opposition is also thinking how it might approach a similar policy (see http:/bit.ly/20pertax).
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Splitting up pension assets in divorce proceedings is likely to involve highly challenging calculations |
A slice of the sspoils
Pensions, at the best of times, are notoriously complex. The multitude of options available, as well as ever-changing rules, often makes the situation difficult to keep up with. These complications are further compounded by changes to the status of the member. Marriage, death, retirement and indeed divorce all raise questions about the calculation and payment of the pension benefits. Divorce, despite anecdotal evidence, is not in fact as common as it was just a few years ago. In 2008, the divorce rate in England and Wales fell to 11.2 divorcing people per 1,000 married population, compared with the 2007 figure of 11.8, a fall of 5.1%. The divorce rate is at its lowest level since 1979 when it was also 11.2.
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All wrapped up
The Financial Services Authority’s (FSA) announcement that it was pushing back the follow-up consultation on discussion paper DP10/2 from the summer to the autumn came, it said, so it could assimilate the considerable feedback it had received and so achieve “the right outcome”.
This turned the spotlight once again on this area of the market and served to illustrate the growing importance of platforms in the financial services industry.
There are significant issues to be addressed by the consultation paper and industry practitioners, namely reregistration, transparency of charges, and whether fund manager rebates should be banned.
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Painting a fuller picture
Projecting what pensions illustrations will look like in 10 years is fraught with danger. Suffice to say the industry never moves as fast as you expect. Inevitably, as our financial lives become more complicated, so too will our requirements of retirement planning products. More importantly, people are going to increasingly demand more holistic and dynamic views of their financial status in the round.
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Will the launch of many new corporate platforms trigger a sea change in employee benefit provision? |
Platform for change
As the needs of the workforce and its employers evolve, will the integrated platforms currently under development meet their demands?
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A complex framework of care
A national debate is required to decide how care funding for the elderly can be reformed to provide enough for the UK’s retirees
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Vince Smith-Hughes |
A brave choice
Drawdown is not for everyone, but with so many options available clients could reap the rewards, if they can access high quality advice
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Predicting the impossible
The UK has lessons to learn from global pension plans that have been working to manage the risks associated with people living longer
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Next generation retirement
Despite several worthy alternatives, annuities remain the best choice for most retirees, with many variations and options on offer
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The new wave of annuities
Recent tremors in the stock market have emphasised the need to protect pension pots from the effects of inflation and equity downturns
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Choice, choice and more choice
Although more choice generates more work for advisers, the customer will ultimately benefit
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Made to order
The rapidly expanding drawdown market is attracting clients seeking a bespoke retirement solution with the added bonus of flexible options
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Not all black and white
If annuities are safer and more tax-efficient, will choosing riskier drawdown leave retirees out in the cold?
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Kim Lerche-Thomsen |
Offer more options
A lifetime annuity is far from the only option available to retirees, who must be made aware of the choices on offer in the marketplace
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Athole Smith |
Giving your assets a longer shelf life
The apparent obligation to annuitise has often led to a products receiving a bad press, but the benefits of a lifetime income must not be forgotten
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Chris Read |
The only way is up
What does the emergence of wrap platforms as the gatekeepers to the sale of pensions and investment products mean to the key players in the UK market?
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