Pensions Minister keeps up pressure on Annuity industry

Steve Webb 1Steve Webb, the Government’s Pensions Minister, has continued to build up pressure on the Annuity industry, saying yesterday that “Annuities need a rethink.” The latest intervention from Mr Webb comes on the back of comments he made earlier in the month promoting the idea of a switchable Annuity, which would allow pensioners to change their Annuity provider much like someone might do with their mortgage or credit card. Annuity reform? A Lifetime Annuity, often simply referred to as an Annuity, is used ...

Automatic Enrolment: Charge cap to be delayed

Auto EnrolmentA proposed cap on pension charges, which would have saved workers millions of pounds has been delayed for at least a year, according to reports this morning. Over the next few years millions of workers are set to be automatically enrolled into workplace pensions. To protect workers from high fees and improve the income available to them in retirement, a cap on charges, to be introduced in April, had been proposed....

Annuities: Should you give up bread today in the hope of jam tomorrow?

iStock_000007120068XSmallIf you are thinking of buying an Annuity soon, yesterday's Telegraph newspaper should make you sit up and take notice. The front page story was an interview with Steve Webb, the Pensions Minister, who said he would like to see an Annuity product which would allow pensioners to transfer from one insurer to another, if a better rate was offered. Mr Webb asked: “Why shouldn’t you be able to change your annuity provider so a few years later ...

Automatic Enrolment: Government to consider a cap on charges

iStock_000016457256_ExtraSmallIn a bid to improve the pensions of millions, the Government is set to consult on whether the charges paid by employees, who are automatically enrolled into a pension over the next few years, should be capped. Between 2012 and 2017 all employees over the age of 22 and earning above £9,440 per year, who are not already in a suitable workplace pension, will be automatically enrolled into a pension. Contributions will be made by both the employer and the employee and ...