Three things clients may call you about this week...

Three things clients may call you about this week...

clock • 2 min read

Here is our weekly heads-up on the stories that may have caught your clients' attention over the weekend...

Take some risk

The FT reports insurers are being "warned" they must take greater risk with pension investments to "face down a competitive threat from asset managers" and leverage retirement market reforms.

A report from Deloitte forecasts a 23% increase in profits for the life insurance industry over the next ten years but also highlights the growing challenges faced by traditional players as new competitors enter the marketplace and increased regulation bites.

The FT article quotes the report: "The industry has become more vulnerable to disruption," it says.

"Disrupters are targeting longstanding areas of market weakness, such as the perceived high cost of advice, as well as new opportunities, such as high demand for flexible retirement income created by pension freedom."

 

Pensioner bonds

The Telegraph says changes to the savings allowance mean popular pensioner bonds will now be tax-free.

The paper states: "The highly popular and somewhat controversial pensioner bonds are set to get an even bigger earnings boost thanks to the new personal savings allowance."

The bonds, which went on sale early last year, were open to everyone aged 65 and over, with the one-year option paying 2.8pc and the three-year option paying 4pc.

Until 6 April savers will have to pay tax on the interest that bonds pay at their normal rate, the Telegraph explains.

However, "those whose bonds mature after April 6 can receive their interest completely tax-free, as long as they remain within the new personal savings allowance".

 

Things can only get…

Saving rates have halved in the past two years and things are about to get worse, an article in the Telegraph warns.

The paper said Bank of England data showed one-year cash ISA rates are at their lowest level since 2008.

It said rates were down due to growing economic uncertainty. Returns on one-year cash ISAs have dropped 23% in four months, paying an average 1.17%, Bank of England data showed.

In 2013, the paper said the equivalent accounts paid out 2% on average.

Analysts predict things could get worse, it added. They are urging savers to lock into fixed rate offers now.

 

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In-depth

FCA's ongoing advice services findings 'encouraging' but work not over

FCA's ongoing advice services findings 'encouraging' but work not over

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clock 24 February 2025 • 7 min read
Financial abuse: The silent crime advisers must learn to detect

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clock 18 February 2025 • 5 min read
Tough but manageable: The advice PII market in 2025

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