AIFA calls for the chancellor to be 'restrained' on pensions

www.moneynews.co.uk > Pensions > AIFA calls for the chancellor to be 'restrained' on pensions

AIFA calls for the chancellor to be 'restrained' on pensions

Fri 7th Mar 2008

The Association of Independent Financial Advisors (AIFA) has urged the chancellor not make "radical changes" to the pensions market when he delivers the 2008-09 Budget next week.

Chris Cummings, director general of the group, has said that although it supports the government's pension reforms, AIFA also believes that they require "more clarification".

He noted that some people would be better off opting out of the personal accounts scheme because of the means-tested benefits systems, but said there is a lack of advice available to employees on what would be the best option for them.

Mr Cummings recommended that independent financial advisors either offered pro-bono work or were paid for by employers in order to give workers access to the individual advice they need.

He added that AIFA is concerned that "good employer-sponsored pension schemes may 'level down' to the minimum contribution requirements of personal accounts".

Earlier today the Pension Protection Fund announced new plans to charge companies with pension schemes that are reliant on risky investments, such as equities, higher premiums.

Related News : Pensions
	Over-55s don't believe in paying for care, reveals Aviva
	East Midlands comes top in pension contributions
	Corporate pensions provider issues advice for businesses
	One third of workers have no pension, claims Prudential
	More than a third of Brits fail to reassess pension risk, claim experts
	Women protest at No 10 over proposed pension reforms
	Retirement age 'to be brought forward by ten years'
	Interest rates held at 0.5 per cent by Bank of England
	Pension contributions fall in recession, ONS reveals
	Equity release for retirement 'might not suite every household'