02/11/2004
Proposed stakeholder changes may offer 'greater protection'
The government is considering changes to the stakeholder pension that will see savings moved to less volatile investments five years before retirement.
Announcing a consultation on stakeholder pension changes, Pensions Minister Malcolm Wicks said that 'lifestyling' provisions will offer additional security for customers in the run-up to their retirement.
'Lifestyling' means that at least five years before retirement, the members' pension savings will start to be moved into less volatile investments in order to reduce the risk of a sudden drop in value shortly before retirement.
Stakeholder pensions were introduced in April 2001 and to date over two million have been sold.
Mr Wicks said: "We are making these changes so that stakeholder pensions can become part of the new suite of stakeholder products that can be sold through a new basic advice process.
"The key change is that the savings of those people who do not want to make investment choices will be 'lifestyled'.
The new stakeholder pension charge cap comes into effect in April 2005, and the cap for existing members will be held at 1%, it was also announced today.
The recent Sandler review 'Medium and Long-Term Retail Savings in the UK' found there were a number of problems with the long-term savings industry, for example the complexity of products and the opacity of terminology. This made it difficult for lower or middle income consumers to access these products.
The consultation period will run until December 17. The department is aiming to make and lay these regulations in early 2005, to come into force on 6 April 2005.
(gmcg/sp)
Announcing a consultation on stakeholder pension changes, Pensions Minister Malcolm Wicks said that 'lifestyling' provisions will offer additional security for customers in the run-up to their retirement.
'Lifestyling' means that at least five years before retirement, the members' pension savings will start to be moved into less volatile investments in order to reduce the risk of a sudden drop in value shortly before retirement.
Stakeholder pensions were introduced in April 2001 and to date over two million have been sold.
Mr Wicks said: "We are making these changes so that stakeholder pensions can become part of the new suite of stakeholder products that can be sold through a new basic advice process.
"The key change is that the savings of those people who do not want to make investment choices will be 'lifestyled'.
The new stakeholder pension charge cap comes into effect in April 2005, and the cap for existing members will be held at 1%, it was also announced today.
The recent Sandler review 'Medium and Long-Term Retail Savings in the UK' found there were a number of problems with the long-term savings industry, for example the complexity of products and the opacity of terminology. This made it difficult for lower or middle income consumers to access these products.
The consultation period will run until December 17. The department is aiming to make and lay these regulations in early 2005, to come into force on 6 April 2005.
(gmcg/sp)
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10 August 2001
Companies urged to meet stakeholder deadline
Companies in Northern Ireland with five or more employees have been advised to act now to meet their responsibilities to provide access to stakeholder pensions for their employees. The Department for Social Development (DSD) has written to employers reminding them that they have until 8 October to make such provision.
Companies urged to meet stakeholder deadline
Companies in Northern Ireland with five or more employees have been advised to act now to meet their responsibilities to provide access to stakeholder pensions for their employees. The Department for Social Development (DSD) has written to employers reminding them that they have until 8 October to make such provision.
08 October 2001
Workers shun stakeholder pension schemes
The Government’s stakeholder pension scheme has, according to a recent report from the Prudential, failed to attract many of the workers it set out to target. The Prudential commissioned survey also indicated that many workers had not been notified by their employers about the scheme in their place of work.
Workers shun stakeholder pension schemes
The Government’s stakeholder pension scheme has, according to a recent report from the Prudential, failed to attract many of the workers it set out to target. The Prudential commissioned survey also indicated that many workers had not been notified by their employers about the scheme in their place of work.
02 October 2001
NI lags behind UK in designating stakeholder pensions
Only two thirds of Northern Ireland businesses have designated a stakeholder pension provider compared with the UK average of 85 per cent a new report shows.
NI lags behind UK in designating stakeholder pensions
Only two thirds of Northern Ireland businesses have designated a stakeholder pension provider compared with the UK average of 85 per cent a new report shows.
09 July 2001
SHAREHOLDER PENSION LEGISLATION GUIDE LAUNCHED
AN independent guide for small businesses on the detailed requirements of the new shareholder pension legislation has been published. The guide, by Is4profit, the internet-based business information and advisory service for SME’s, supplies a step-by-step approach for small firms with regard to the new legislation.
SHAREHOLDER PENSION LEGISLATION GUIDE LAUNCHED
AN independent guide for small businesses on the detailed requirements of the new shareholder pension legislation has been published. The guide, by Is4profit, the internet-based business information and advisory service for SME’s, supplies a step-by-step approach for small firms with regard to the new legislation.
27 August 2001
Norwich Union launches £3m advertising campaign
Norwich Union Life launched a £3m second wave advertising campaign on Monday August 27 aimed at promoting the newly launched government-style stakeholder pensions. The move follows on the back of Norwich Union’s high profile £7 million TV launch campaign in May.
Norwich Union launches £3m advertising campaign
Norwich Union Life launched a £3m second wave advertising campaign on Monday August 27 aimed at promoting the newly launched government-style stakeholder pensions. The move follows on the back of Norwich Union’s high profile £7 million TV launch campaign in May.
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