Explore the latest highlights on Money Marketing this week! Abrdn makes waves with the launch of its new MPS offering, while expert advice reveals the path to pension prosperity: saving £460 monthly in your twenties. Read more below:
Abrdn launches new MPS offering
Abrdn has introduced a new model portfolio in response to client demand, offering a low-risk alternative to cash products. The Abrdn Money Market MPS aims to closely track the Bank of England base rate and is accessible on both its Wrap and Elevate platforms.
This portfolio is available across all tax wrappers, providing advisers the flexibility to integrate and customise solutions within their existing investment offerings.
Save £460 a month in your twenties to become ‘pension millionaire’
Saving £460 monthly into a pension via a salary sacrifice scheme in your twenties can guarantee £1 million by retirement at 65, states Investec Wealth & Investment.
Contributions grow at 3.8% annually, with a 2.6% yearly rise. Waiting until your thirties requires £775 monthly, and in your forties it’s £1,400.
Firms struggle to meet price and value outcome of Consumer Duty, says FCA
Seven months after the Consumer Duty regulation took effect, the FCA has identified price and value as the most difficult aspect for adviser firms to address. Sheldon Mills, the FCA’s executive director for consumers and competition, emphasised the need for firms to enhance their efforts on fair value and pricing to ensure positive outcomes for consumers.
Mills highlighted concerns that many fair value assessments lack solid data and credible evidence to justify the value of products to retail customers.
FCA secures bankruptcy orders in £11m Sipp compensation case
The Financial Conduct Authority (FCA) has obtained bankruptcy orders against directors of Avacade and Alexandra Associates in a multi-million-pound compensation case.
These firms, operating as introducers, promoted unregulated investments to consumers, leading thousands of clients to transfer their pensions into self-invested personal pensions (SIPPs).
Abrdn launches manifesto to ‘get Britain investing’
Abrdn has unveiled a new manifesto aiming to encourage investment in Britain. This initiative follows research findings indicating that only 16% of UK adults prefer pensions to property as an investment.
Additionally, Abrdn’s research revealed that only 19% of individuals hold shares outside of their pension, with four in ten of those not holding them in an ISA.
Advice holds the key to work-life balance success for young mothers
Holly Tomlinson discusses balancing motherhood with a financial advice career, noting the industry’s low female representation. She emphasises time management and honesty with clients about parental commitments.
Tomlinson advocates promoting the profession to young women, aiming to close the gender gap. She concludes by encouraging women to consider financial advice for its potential work-life balance.
‘Triple-lock’ debate reignited after Labour confirms commitment
Labour’s pledge to uphold the state pension triple lock if it wins the general election has sparked calls for a government review and revived the debate on its sustainability.
The triple lock ensures that the state pension increases annually by the highest of average earnings, inflation or 2.5%. Due to this mechanism, the state pension is set to rise by 8.5% this April.
Weekend Essay: Being single is so expensive
Lois Vallely discusses the financial challenges of being single, particularly in comparison to being in a relationship. She highlights the increased costs of living alone, including finding affordable accommodation and managing expenses on a single income.
Vallely also explores how being single can impact retirement planning, citing research indicating it’s easier to save for retirement when in a long-term relationship. She concludes by considering the idea of actively seeking a life partner to alleviate some of the financial pressures of being single.
Canada Life UK sees record-breaking year for sales in 2023
Canada Life UK achieved its highest-ever sales of £4.3 billion in 2023, marking a significant milestone for the company. Despite labelling 2023 as a “challenging period,” the UK financial services provider experienced a remarkable 121% increase in individual annuities sales compared to 2022.
Annuity sales for the year totalled £1.2 billion, with an additional £0.6 billion in bulk purchase annuities sales.
Man pleads guilty to £19m investment fraud
A Lancashire man, Guy Flintham, has been convicted of fraud in connection with an unauthorised multimillion-pound investment scheme. Flintham was found guilty of defrauding approximately 240 investors who collectively invested around £19 million in the scheme operated by him.
The prosecution, led by the FCA, revealed that Flintham had made numerous fraudulent claims to investors from January 2016 to November 2021.
