Explore this week’s top stories on Money Marketing.
These include a report that the UK state pension age is projected to reach 71 by 2050 and advised platforms experiencing their highest-ever outflows in 2023.
Read on for more details:
UK state pension age to reach 71 by 2050
The future of the state pension has been questioned following an “alarming” report released on February 5 that suggested the retirement age for UK workers might have to rise to 71 by 2050. Published by the International Longevity Centre, the report concerned the financial-services sector, with experts describing it “sobering”. The UK pension age, currently at 66, is expected to increase to 67 between May 2026 and March 2028, and then to 68 by 2044.
Octopus expands shareholding in Seccl as co-founders depart
With Seccl’s two co-founders, Dave Harvey and Hugo Thorman, set to leave the company in March, Octopus has announced plans to increase its shareholding in Seccl. Harvey and Thorman founded Seccl after departing from Ascentric. Octopus acquired Seccl in 2019 and has since expanded its offerings, introducing various products, services and tools, including its fully-automated Sipp.
Advised platforms suffer highest-ever outflows in 2023
Outflows from advised platforms reached unprecedented levels in 2023, according to new research from the Lang Cat. Last year saw a total outflow of £53.18bn, an increase of over a third compared to 2022’s total of £39.01bn. Notably, in the fourth quarter of 2023 alone, outflows amounted to £14.89bn.
David Ferguson: Prepare for radical reshaping of our sector economics
David Ferguson, CEO of Seccl, predicts a significant transformation in the financial sector’s economics, driven by regulatory changes and technological advancements. He anticipates a shift towards more flexible and cost-effective platforms, empowering advisers to better serve their clients. Ferguson envisions a redefinition of the customer experience, with ownership returning to advisers.
Bravura appoints new chief people officer
Bravura has announced the appointment of Gillian Davie as its new chief people officer, succeeding Duncan Thomas, who departed last year. In her new role, Davie will lead Bravura’s global people and culture teams with a focus on attracting, developing and retaining top talent to support the digital transformation of some of the world’s largest financial institutions.
Alistair Cunningham: Calling out inherent inequity of LTA abolition
Uncover the implications of the impending pension-tax reforms with Alistair Cunningham’s insightful analysis. Discover how these changes could disproportionately benefit senior civil servants and public-sector employees, potentially prompting early retirement. Despite the inherent inequity, explore the opportunities these reforms present for financial planners and the critical need for advice among those with substantial pension assets.
AJ Bell offers free webinars to help advisers navigate life after LTA
AJ Bell is offering free webinars and support for advisers to navigate new rules following the abolition of the Lifetime Allowance (LTA). Effective from 6 April, this change introduces three new pieces of legislation: the Lump Sum Allowance (LSA), the Lump Sum and Death Benefits Allowance (LSDBA) and the Overseas Transfer Allowance (OTA). Advisers are encouraged to explore pension tax planning opportunities for clients.
Women ‘need to work extra 19 years’ to build same pension pot as men
According to a report from the Pensions Policy Institute (PPI), women typically require an additional 19 years of work to retire with the same pension savings as men. The report, ‘The Underpensioned: Defining the Gender Pension Gap’, explores the various factors contributing to inequality in retirement outcomes between genders. Pensions experts assert that these findings underscore the persistence of the gender pay gap.
Auto-enrolment earnings threshold kept at £10,000
On 6 February, the Department for Work and Pensions (DWP) announced the decision to maintain the current threshold for the auto-enrolment earnings trigger throughout 2024 to 2025. This threshold, set at £10,000, determines when an individual’s salary qualifies them for automatic enrolment into their workplace pension scheme. Additionally, the DWP will uphold the freeze on the lower earnings limit at £6,240. This limit dictates the point from which an individual’s earnings are used to calculate pension contributions into a scheme.
Ros Altmann: Mansion House reforms need to go a lot further
Explore Ros Altmann’s perspective on the essential reforms needed to invigorate pension funds and bolster economic growth. Learn about the potential positive changes in the investment landscape, driven by governmental policies and shifting perspectives on risk. Understand why increased exposure to growth assets could be a game-changer for UK financial markets and the economy. Altmann, a former pensions minister, shares insights on how these reforms could enhance retirement prospects and foster sustainable growth.
