Lateral thinking
Article Abstract:
Group personal pensions could become more common in the UK as a result of the 1995 Pensions Act. They allow greater flexibility for employers and can be carried by employees who change jobs. They are not subject to restrictions that affect defined benefit schemes. Additional volunatry contributions (AVCs) may also become more popular as money purchase schemes grow in importance and employees seek to boost their retirement income. Money purchse schemes do not always perform as well as defined benefit schemes, so there is a greater need to save.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Home income plans
Article Abstract:
Home income plans are a means for the aged to use assets locked in their home for an income. They involve taking out a mortgage in order to buy an annuity. Such plans achieved a poor reputation in the 1980s when assumptions as to their performance were over-optimistic and rising interest rates meant that mortgage interest payments increased. These plans suit older people more since annuities gained will be more. They affect the estate of investors and should be considered with caution.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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Moving on, losing out
Article Abstract:
The UK 1995 Pensions Act could affect the transfer values of company pensions. The Act includes a minimum funding requirement which means that schemes giving low transfer values have to increase these. Some schemes pay generous transfer values and these schemes may become less generous, following the Act. The element of the pension that can be taken as a tax-free sum if a transfer is made to a private scheme is also likely to be reduced as a result of the Act.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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