The popularity of the UK’s pension freedoms is showing no signs of slowing, with almost £20bn ($26.2bn, €22.4bn) having now been flexibly accessed since the reforms launched in April 2015, according to the latest figures from HM Revenue & Customs.
AJ Bell and Seneca are among investment managers shedding bonds as rate hikes loom, but others are concerned alternative assets present new sources of risk.
Scammers are showing an increased appetite for ripping off unsuspecting UK consumers after £51m was stolen in the first three months of 2018/19, figures from the City of London Police reveal.
About £3bn ($3.9bn, €3.4bn) that has been flexibly withdrawn from UK pensions is currently sitting in low yield bank accounts, with investors facing the “double jeopardy” of tax on withdrawals and low returns, according to research by AJ Bell.
The belief that UK pension transfers peaked in 2017 has been proven wrong as figures from the UK’s Office for National Statistics (ONS) show £10.6bn flowed out of defined benefit schemes in the first quarter of 2018.
UK pensioners who are still working could have to pay National Insurance (NI) contributions to help fund their care in later life, according to plans being considered by the government.
As the Financial Conduct Authority (FCA) finalises its policy paper on defined benefit (DB) pension transfers, experts hope it will bring some certainty to an industry that has been in a constant state of flux since 2015.
Almost £17.5bn (€20bn, $24.3bn) has been withdrawn from pensions since the freedoms were launched three years ago, according to the latest figures from HM Revenue & Customs.
Ad-hoc pension withdrawals could be overtaxed in the new tax year by thousands of pounds, AJ Bell has warned.
AJ Bell has brought in a legal ringer ahead of its initial public offering, Charles Stanley has bolstered its Edinburgh office with three ex-Tilney people and Intertrust has appointed a director to support clients who need to defer bonus payments.
The Financial Conduct Authority (FCA) has “no immediate plans” to ban trail commission on legacy investment products, it has announced in a policy statement that looks to shake-up the asset management industry.
Invesco Perpetual is expected to cut its 44% stake in AJ Bell, alongside second-largest shareholder Andy Bell, to make it easier for smaller investors to get in on the firm’s IPO.
