FCA surprised that doing nothing didn’t fix OMO!

January 8, 2016 Leave your thoughts FCA Canary Wharf London

FCA surprised that doing nothing didn’t fix OMO! The Financial Conduct Authority (FCA) have released data that shows that the majority of people purchasing annuities actually bought them from their existing provider and didn’t make use of the Open Market Option to shop around for a better deal. The real […]

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Living in “interesting times” in the pensions’ world

December 19, 2014 Leave your thoughts Robert-Kennedy-Interesting-Times

The apocryphal Chinese curse, “May you live in interesting times” was quoted by Robert Kennedy in his famous “Day of Affirmation” speech [1]. In it he stated that although interesting times were times of danger and uncertainty, they were generally the most creative times. Few would have believed this time […]

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Taxpayer being steamrollered by pension electoral tactics

October 7, 2014 Leave your thoughts

Why have the government decided to distort the tax system by making pensions capable of being used as a device to avoid inheritance tax? The casual approach of the Treasury to pension strategy, with sudden announcements of ill-considered changes, shows a lack of coherent thinking behind the changes in the pension system. This has led to a lot of post-facto explanation and justification to try to cover up the lack of thought prior to the announcement.

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Exaxe expands product offering in response to Osborne’s budget pension overhaul

September 30, 2014 Leave your thoughts

Exaxe announced today the release of Admin Plus, its new policy administration software solution. In response to the radical changes in the pensions industry, announced in Osborne’s 2014 budget, Exaxe has met the need for a policy administration software solution which can support both the accumulation phase and decumulation phase by combining two of its former software solutions Income Plus and Invest Plus.

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Latest pension changes undermine the case for pension tax relief

September 29, 2014 Leave your thoughts

The Conservative Party has been heartened to hear that the Chancellor is responding to the attacks from UKIP with a straightforward appeal to the grey vote. He will announce to the party conference today that he is changing the tax rules that apply to income drawdown pots post the death of the pensioner; the so-called death tax that applies to the family who cash in the pension fund. From now on, this will only be taxed at the marginal rate, if the pensioner is over 75 when he dies and will not be taxed at all if the pensioner dies before that age.

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Drawdown publicity campaign needed

September 18, 2014 Leave your thoughts

Now that the Chancellor’s reforms have put annuities firmly in the doghouse, the question is what type of product is likely to be the most popular among those about to retire. The general industry mood reflected in the financial press seems to lean towards income drawdown style products as being […]

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Guidance issue is key to pension reform success

July 17, 2014 Leave your thoughts

Compared to most other countries, the decumulation sector in the UK is very sophisticated. A wide variety of decumulation options are in place to deal with longevity risk. The danger of outliving your money is the most severe risk faced by the public because when it impacts, the individual is […]

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Government is ignoring longevity risk with pension reform

July 8, 2014 Leave your thoughts

The OECD has made a diplomatic intervention to critique mildly the UK government’s abolition of the annuitisation rules for pensions. One does not have to be Sherlock Holmes to spot the clues that reveal that the OECD is actually aghast at the extent of the change. This policy runs against […]

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Why ‘going Dutch’ does not always mean you’ll get what you ordered!

June 4, 2014 3 Comments

Three months after shaking up the pensions market, the government has decided it’s time to do it again. Following the complete ‘liberation’ of the pension market announced in the budget, heralded by the abolition of the compulsion to purchase annuities with pension pots, the government has decided that they will […]

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