| Store cards that charge interest at 25% or more a year will have to warn customers on their statements that they can get cheaper credit elsewhere.
The commission believes that greater transparency would bring more competitive pressures into the supply of store cards, thus bringing charges down.
|
Read more about erectile dysfunction.
| auto company finance insurance premium united //eventextremalfinance.blogs.india4u.com/2008/01/27/news-money-box-scoops-top-award-3/”>finance and insurance manager p://carinsurancefinance.livedway.info/2008/01/17/news-good-news-for-abbey-investors/”>finance household insurance p://corporateestfinance.livedway.org/2008/01/17/news-consumer-alert-over-extra-pension-2/”>1035 annuity exchange finance insurance ira transfer slators are hoping to bring that to a close with a parliamentary bill that would draw prostitutes into the legal fold and bring the industry under state control, providing sex workers with labour rights and greater health protection.
The sex workers themselves would be expected to pay up when the tax man calls - boosting state coffers to the tune of an estimated 50 million euros a year.
In Thailand, for example - where both sex workers and some policy advisers have been pushing for legalisation and taxation - the sex industry is thought to account for at least several percent of the nation’s GDP. In Britain, it is estimated that some 770m ($1.2bn) is spent on prostitution every year, more than on cinemas or many other forms of entertainment. Those who can tap it, do. The US state of Nevada, where prostitution is legal, hopes to pick up millions of dollars over the next two years from houses of prostitution. But for most it remains untouchable capital, beyond the reach of politicians needing cash injections for ailing health services, welfare systems and other popular expenditures. Legalisation is often the only way to tap into this source of wealth while offering prostitutes better working conditions, a route both Germany and the Netherlands have embarked on in recent years. Prostitutes in Germany, believed to number around 400,000, have for the past year been able to take part in a scheme that offers social benefits like pensions, health insurance and a 40-hour week in sanitary conditions, in exchange for a slice of their earnings.
For their part, Dutch prostitutes have been asked to pay 19% VAT for similar rights since brothels were legalised nearly three years ago. Advocates of this kind of legislation believe it is the only way to make sure sex workers enjoy adequate health and employment protection. Opponents say it simply consolidates them in a position from which governments should be battling to remove them. Teething problems Finance ministries in both Germany and the Netherlands say it is impossible to calculate just how many prostitutes have registered to pay tax as forms do not ask them to name their profession. But anecdotal evidence from prostitutes’ organisations suggests that many have, where possible, at least tried to take up the offer. “It has, however, been very difficult,” says Marion Detlefs of the Hydra prostitute advice centre in Berlin. “When it was set up there was much talk of securing proper contracts, proper health insurance but a lot of this hasn’t materialised because of big holes in the legislation. “At the moment it looks like all the government cares about is getting their hands on sex workers’ money - women who are already hard-up are giving their earnings away and getting very little return.” Despite the problems of these fledgling laws, European groups lobbying for better conditions for prostitutes believe they are at least a step in the right direction. “But it has to be a matter of mutual benefit,” says Marieke van Doorninck of the Institute for Prostitution Issues. “Governments have to offer real labour rights and protection in exchange.” “It’s a slow process, but I do think it’s moving, and that the situation for prostitutes is improving. People’s attitudes are also starting to soften.” Ms van Doorninck says that while money provides one impetus for governments to legalise prostitution, the other issue is bringing the industry under state control to regulate its expansion. In the Netherlands, legalisation has not led to the expansion of the industry, as predicted by some, but in fact to the closure of a number of brothels which are unable to comply with the restrictions and the bureaucracy involved with gaining legal status. But under the Dutch law, only Dutch citizens and those from the European Union are allowed to work as prostitutes in brothels, which many believe will have pushed illegal migrant sex workers onto the streets. While their earnings may be safe from the tax man, neither they nor their cash enjoy much protection from underworld bosses. Should prostitution be legalised and governments use its revenue? Or should more be done to stamp the profession out? Your reaction Three words described legalized prostitution –”Opening Pandora’s Box”. I’ve got children who could eventually work in brothels and the streets if they cannot meet their financial needs in the future. Nothing can compare to the evil legalised prostitution will bring to your country and to the world at large. God Bless!)
We are speaking as those from developed countries where the choice of whether to work in the prostitution trade is often a lot easier. Would any mother or father really want their daughter to work in the trade? What about those forced into the trade and trafficked from the developing world? Women from countries in the EU do not want to work as prostitutes so the women have to be imported from countries where the economic situation is so bad the women have no choice. It is estimated that two thirds of those working in the brothels in the Netherlands are from outside the EU. Once again an example of a developed country exploiting the poverty and desperation of those in the developing world. But hey - Belgium will get richer out of the taxes so let’s concentrate on that! Having heard too many horror stories about the conditions of prostitute’s lives, I can’t help feeling that legalization and a strong support structure is vital - but perhaps in combination with a clampdown on illegal prostitution (ie pimps and clients, not persecution of prostitutes). Currently the half-tolerated but illegal position of prostitution benefits nobody except unscrupulous criminals.
Prostitution is a fact of life and is a service which if regulated would hurt nobody. At the moment, a blind eye is turned on massage parlours and conditions are poor. Admission of prostitution and incorporation of it into the service sector could improve conditions and free resources to move prostitutes from the streets which is a cause of concern for local communities and in view of the safety aspects of the girls. I went to Amsterdam recently on holiday with friends. To my surprise, the Red Light District is so damn well organised. More importantly, people are friendly (as you’d expect) and they all get on. The place is clean, people dont fight, and the girls are making more money than most people. Fact is, if people are willing to work as Prostitutes, let them but tax them and make it legal in certain places. Keep the area under constant monitoring and let the government make more money!!!!
Like drugs, gambling and pot noodle, prostitution is something that appeals to human instincts. It’ll happen regardless of whether it is legal or not. Legalising it should make it safer for all parties and take some of the seediness out of it.
Thou Shalt NOT commit Adultery. Agriculture is the oldest profession, not prostitution! Surely the safety of the girls should be the prevailing factor rather than the cash that could be generated. It is shocking that prostitutes are treated as 2nd class citizens because it upsets the principles of a few middle class bores. Prostitution is not an occupation which is chosen but is thrust upon someone who is vulnerable and has nowhere else to turn. These people need protection from the dangers they are exposed to from their clients and their ‘pimps’. Legalisation can only be a good thing to help get these girls off the streets.
As long as the woman or man voluntarily sells her or himself, then i don’t see why it should prohibited. What one wants to do with one’s own body is not the business of anyone else. However, if it becomes legally permissible, i definitely think that it should be taxed just like any other industry. The same applies to substances such as marijuana - let people decide to abuse their own bodies as they see fit. Yes! Legalise it and collect the revenue. Like the drug issue it will not go away no matter how stigmatised, criminalised or politicised it becomes. Tax an inevitable source of revenue and make conditions safer for all involved.
Prostitution is a sickness of society, opposes family values, increases abortion and is often the desperate act of drug addicts to obtain cash. It should never be legalised. If the government wants to tap money from this market then they should impose huge fines on prostitutes, to stop the crime paying. Whatever our opinions of the profession, it will not go away. America tried to do away with alcohol during the prohibition period and it proved to be impossible. So if it can’t be stopped governments might as well make the best of it. Prostitution is exploitation of women by criminals. Their clients are pathetic. Your description of this activity as a “profession” is a disgrace. I recommend you view the film Lilya-4-ever, a look at the day to day realities of prostitutes. Making prostitution legal would benefit the whole community. You will no longer have red light districts on housing estates as areas could be designated by the police. This should help many areas which are affected by the constant cat and mouse game between the police and prostitutes. The health benefits would lead to a decline in the rate of sexual disease, as by having regular testing the disease should be treated much earlier. The prostitutes themselves would be able to work in a much safer environment leading to less assault and a lower crime rate against them.
Stamping our prostitution is like stamping out sex… will never happen. So governments who realise this say to themselves “If we can’t eliminate it, then we must take advantage of it and cash in.” Money is not the root of all evil… weak men are. I am originally from New Zealand and prostitution has finally been decriminalised there recently. Prior to this there was quite a percentage of prostitutes paying tax on their earnings anyway and the government seemed to have no qualms using the revenue. Prostitution should be decriminalised. All this amounts to is the governments acting as pimps and providing protection for their ’staff’ in return for a slice of their wages.
Yes it should be legalised, but not with the aim of simply collecting more tax revenue. One of the greatest scandals of our age is the trafficking of women to be abused as sex objects. Anything that can make it tougher for criminals to enforce their brutal exploitation of these helpless victims has to be welcomed. Well, several hundred years of trying to extinguish prostitution didn’t help. I’m strongly in favour of legalisation as it would help in health and social issues. The additional benefit is that legal brothels would help in preventing trafficking as someone with a legal business would be less willing take a risk with illegal activities. Until three years ago prostitution was illegal, but accepted. The police could keep an eye on the situation (investigate criminals that forced young Eastern European girls into prostitution) and local government could develop a policy concerning prostitution (locate it in certain parts of town etc). Now it is legal, the position of legal prostitutes has improved a little. But the illegal prostitutes are much worse off. They are not visible anymore and more easily the victim of criminal groups that are active in prostitution. The aim of the legalisation was to protect prostitutes. In my opinion it has failed. Yes it should be legalised. The government could make a huge amount of money from the industry and it would provide safer surroundings for those who work in the industry. It will always exist in every society. Therefore, the mature and responsible course of action is to bring it within the government sphere of influence. This will make it safer for both parties involved and allow the government to take a piece of the pie. The taxes could be used for schools and the NHS.
|
| Banks must do more to promote security among their online customers, the UK’s finance watchdog has said.
|
| South Africa’s programme to open ownership of the country’s firms to black investors needs to be reviewed, finance minister Trevor Manuel says.
|
| automobile finance insurancep://my.vipublog.com/departmentof/2008/01/27/news-ruling-on-endowment-mis-selling-2/”>tourist insurance finance zurich ators are hoping to bring that to a close with a asset company derivative finance from in insurance insurance liability management underwriting wiley bill that would draw prostitutes into the legal fold and bring the industry under state control, providing sex workers with labour rights and greater health protection.
The sex workers themselves would be expected to pay up when the tax man calls - boosting state coffers to the tune of an estimated 50 million euros a year.
In Thailand, for example - where both sex workers and some policy advisers have been pushing for legalisation and taxation - the sex industry is thought to account for at least several percent of the nation’s GDP. In Britain, it is estimated that some 770m ($1.2bn) is spent on prostitution every year, more than on cinemas or many other forms of entertainment. Those who can tap it, do. The US state of Nevada, where prostitution is legal, hopes to pick up millions of dollars over the next two years from houses of prostitution. But for most it remains untouchable capital, beyond the reach of politicians needing cash injections for ailing health services, welfare systems and other popular expenditures. Legalisation is often the only way to tap into this source of wealth while offering prostitutes better working conditions, a route both Germany and the Netherlands have embarked on in recent years. Prostitutes in Germany, believed to number around 400,000, have for the past year been able to take part in a scheme that offers social benefits like pensions, health insurance and a 40-hour week in sanitary conditions, in exchange for a slice of their earnings.
For their part, Dutch prostitutes have been asked to pay 19% VAT for similar rights since brothels were legalised nearly three years ago. Advocates of this kind of legislation believe it is the only way to make sure sex workers enjoy adequate health and employment protection. Opponents say it simply consolidates them in a position from which governments should be battling to remove them. Teething problems Finance ministries in both Germany and the Netherlands say it is impossible to calculate just how many prostitutes have registered to pay tax as forms do not ask them to name their profession. But anecdotal evidence from prostitutes’ organisations suggests that many have, where possible, at least tried to take up the offer. “It has, however, been very difficult,” says Marion Detlefs of the Hydra prostitute advice centre in Berlin. “When it was set up there was much talk of securing proper contracts, proper health insurance but a lot of this hasn’t materialised because of big holes in the legislation. “At the moment it looks like all the government cares about is getting their hands on sex workers’ money - women who are already hard-up are giving their earnings away and getting very little return.” Despite the problems of these fledgling laws, European groups lobbying for better conditions for prostitutes believe they are at least a step in the right direction. “But it has to be a matter of mutual benefit,” says Marieke van Doorninck of the Institute for Prostitution Issues. “Governments have to offer real labour rights and protection in exchange.” “It’s a slow process, but I do think it’s moving, and that the situation for prostitutes is improving. People’s attitudes are also starting to soften.” Ms van Doorninck says that while money provides one impetus for governments to legalise prostitution, the other issue is bringing the industry under state control to regulate its expansion. In the Netherlands, legalisation has not led to the expansion of the industry, as predicted by some, but in fact to the closure of a number of brothels which are unable to comply with the restrictions and the bureaucracy involved with gaining legal status. But under the Dutch law, only Dutch citizens and those from the European Union are allowed to work as prostitutes in brothels, which many believe will have pushed illegal migrant sex workers onto the streets. While their earnings may be safe from the tax man, neither they nor their cash enjoy much protection from underworld bosses. Should prostitution be legalised and governments use its revenue? Or should more be done to stamp the profession out? Your reaction Three words described legalized prostitution –”Opening Pandora’s Box”. I’ve got children who could eventually work in brothels and the streets if they cannot meet their financial needs in the future. Nothing can compare to the evil legalised prostitution will bring to your country and to the world at large. God Bless!)
We are speaking as those from developed countries where the choice of whether to work in the prostitution trade is often a lot easier. Would any mother or father really want their daughter to work in the trade? What about those forced into the trade and trafficked from the developing world? Women from countries in the EU do not want to work as prostitutes so the women have to be imported from countries where the economic situation is so bad the women have no choice. It is estimated that two thirds of those working in the brothels in the Netherlands are from outside the EU. Once again an example of a developed country exploiting the poverty and desperation of those in the developing world. But hey - Belgium will get richer out of the taxes so let’s concentrate on that! Having heard too many horror stories about the conditions of prostitute’s lives, I can’t help feeling that legalization and a strong support structure is vital - but perhaps in combination with a clampdown on illegal prostitution (ie pimps and clients, not persecution of prostitutes). Currently the half-tolerated but illegal position of prostitution benefits nobody except unscrupulous criminals.
Prostitution is a fact of life and is a service which if regulated would hurt nobody. At the moment, a blind eye is turned on massage parlours and conditions are poor. Admission of prostitution and incorporation of it into the service sector could improve conditions and free resources to move prostitutes from the streets which is a cause of concern for local communities and in view of the safety aspects of the girls. I went to Amsterdam recently on holiday with friends. To my surprise, the Red Light District is so damn well organised. More importantly, people are friendly (as you’d expect) and they all get on. The place is clean, people dont fight, and the girls are making more money than most people. Fact is, if people are willing to work as Prostitutes, let them but tax them and make it legal in certain places. Keep the area under constant monitoring and let the government make more money!!!!
Like drugs, gambling and pot noodle, prostitution is something that appeals to human instincts. It’ll happen regardless of whether it is legal or not. Legalising it should make it safer for all parties and take some of the seediness out of it.
Thou Shalt NOT commit Adultery. Agriculture is the oldest profession, not prostitution! Surely the safety of the girls should be the prevailing factor rather than the cash that could be generated. It is shocking that prostitutes are treated as 2nd class citizens because it upsets the principles of a few middle class bores. Prostitution is not an occupation which is chosen but is thrust upon someone who is vulnerable and has nowhere else to turn. These people need protection from the dangers they are exposed to from their clients and their ‘pimps’. Legalisation can only be a good thing to help get these girls off the streets.
As long as the woman or man voluntarily sells her or himself, then i don’t see why it should prohibited. What one wants to do with one’s own body is not the business of anyone else. However, if it becomes legally permissible, i definitely think that it should be taxed just like any other industry. The same applies to substances such as marijuana - let people decide to abuse their own bodies as they see fit. Yes! Legalise it and collect the revenue. Like the drug issue it will not go away no matter how stigmatised, criminalised or politicised it becomes. Tax an inevitable source of revenue and make conditions safer for all involved.
Prostitution is a sickness of society, opposes family values, increases abortion and is often the desperate act of drug addicts to obtain cash. It should never be legalised. If the government wants to tap money from this market then they should impose huge fines on prostitutes, to stop the crime paying. Whatever our opinions of the profession, it will not go away. America tried to do away with alcohol during the prohibition period and it proved to be impossible. So if it can’t be stopped governments might as well make the best of it. Prostitution is exploitation of women by criminals. Their clients are pathetic. Your description of this activity as a “profession” is a disgrace. I recommend you view the film Lilya-4-ever, a look at the day to day realities of prostitutes. Making prostitution legal would benefit the whole community. You will no longer have red light districts on housing estates as areas could be designated by the police. This should help many areas which are affected by the constant cat and mouse game between the police and prostitutes. The health benefits would lead to a decline in the rate of sexual disease, as by having regular testing the disease should be treated much earlier. The prostitutes themselves would be able to work in a much safer environment leading to less assault and a lower crime rate against them.
Stamping our prostitution is like stamping out sex… will never happen. So governments who realise this say to themselves “If we can’t eliminate it, then we must take advantage of it and cash in.” Money is not the root of all evil… weak men are. I am originally from New Zealand and prostitution has finally been decriminalised there recently. Prior to this there was quite a percentage of prostitutes paying tax on their earnings anyway and the government seemed to have no qualms using the revenue. Prostitution should be decriminalised. All this amounts to is the governments acting as pimps and providing protection for their ’staff’ in return for a slice of their wages.
Yes it should be legalised, but not with the aim of simply collecting more tax revenue. One of the greatest scandals of our age is the trafficking of women to be abused as sex objects. Anything that can make it tougher for criminals to enforce their brutal exploitation of these helpless victims has to be welcomed. Well, several hundred years of trying to extinguish prostitution didn’t help. I’m strongly in favour of legalisation as it would help in health and social issues. The additional benefit is that legal brothels would help in preventing trafficking as someone with a legal business would be less willing take a risk with illegal activities. Until three years ago prostitution was illegal, but accepted. The police could keep an eye on the situation (investigate criminals that forced young Eastern European girls into prostitution) and local government could develop a policy concerning prostitution (locate it in certain parts of town etc). Now it is legal, the position of legal prostitutes has improved a little. But the illegal prostitutes are much worse off. They are not visible anymore and more easily the victim of criminal groups that are active in prostitution. The aim of the legalisation was to protect prostitutes. In my opinion it has failed. Yes it should be legalised. The government could make a huge amount of money from the industry and it would provide safer surroundings for those who work in the industry. It will always exist in every society. Therefore, the mature and responsible course of action is to bring it within the government sphere of influence. This will make it safer for both parties involved and allow the government to take a piece of the pie. The taxes could be used for schools and the NHS.
|
| An American insurance company is set to create 120 jobs in Northern Ireland.
American Life is part of the American International Group - one of the 10 largest companies by turnover in the world. It currently employs 25 people at its headquarters in Belfast.
The essential est finance hill in insurance investment irwin mcgraw real series The firm said it wanted to recruit a sales force of consultants. Belfast Branch Manager Patrick O’Donnell said: “We’re looking to build a total sales force of 500 across Ireland, with around 150 consultants in Northern Ireland. “A number of other insurance and financial services providers have shut down their sales force and stopped department of insurance and finance meetings with customers over recent years. “But American Life has built its reputation and business on the local community approach - selling financial solutions to real people - and that is what we are intending to do here in Northern Ireland.” Available car finance insurance quote Minister Ian Pearson said he was delighted by the American Life move. “They are one of the most significant insurance companies worldwide,” he said. “Their arrival in Northern Ireland is a positive endorsement of the strength of the local economy.”
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| Banks must do more to promote security among their online customers, the UK’s finance watchdog has said.
|
| South Africa’s programme to open ownership of the country’s firms to black investors needs to be reviewed, finance minister Trevor Manuel says.
|
When Individual Savings Accounts (ISAs) were introduced by Gordon Brown in 1999 the amount that could be paid in was set at 7,000.
At the end of the first year the Treasury said that the tax-free savings allowance would fall to 5,000.
However, the Chancellor later decided to extend the period that the 7,000 limit would continue until April 2006.
In the recently published pre-budget report the Treasury reiterated that the limit would revert to 5,000 in 2006.
 |
 The reduction of the amount that can be invested into a mini cash ISA will be a blow for many savers
|
But under the government proposals - to be opened up to consultation with the finance industry - how the money can be invested in an ISA is to be simplified.
Current limits
Under current rules, a maxi ISA allows investors to put up to 7,000 into shares, but it can also be broken down to allow up to 3,000 to go into cash savings and 1,000 into insurance.
A mini ISA enables investors to split up their money into three separate cash, share and insurance ISAs.
The limits are 3,000 in cash, 3,000 in shares and 1,000 in insurance.
Under the new rules there will only be two elements to a mini ISA - 1,000 maximum in cash and 4,000 into stocks and shares.
The insurance mini ISA - which hasn’t proved popular - is being scrapped.
As for Maxi ISAs, people can use their full tax-free allowance of 5,000 to invest in either stocks or shares, medium-term stakeholder products, life insurance or collective est finance fundamentals hill in insurance investment irwin mcgraw real series.
|
ISA LIMITS FROM 2006
Maxi ISA: 5,000 to be invested in either stocks or shares, medium-term stakeholder products, life insurance or collective investments. Alternatively, up to 1,000 can be held in cash with the remainder in stocks and shares with one provider
Mini ISA: 4,000 in stocks or shares or 1,000 in cash, can be held with two different providers
|
The reduction of the amount that can be invested into a mini cash ISA will be a blow for many savers.
Many people who have paid into a mini cash ISAs may not have dreamed of investing in Personal Equity Plan (PEP) - the predecessor of ISAs.
What is more, the finance and insurance school
of mini cash ISAs came at just the right time, as savings accounts have automobile finance insurance shares in recent years.
Strategy
|
SELECT MINI CASH ISA RATES
Intelligent Finance 4.35%
Portman Building Society 4.35%
Northern Rock 4.20%
Kent Reliance Building Society 4.16%
Variable rate accounts only
Source: Chase de Vere (correct at 16/12/03) |
It is really important to use the higher allowance while you still can.
It is imperative that any savings that are languishing in taxpaying accounts are finance insurance into a mini cash ISA - if you have not yet used your ISA allowance for this tax year.
As for the stocks and shares ISA allowance, there is a major health warning.
You should never use the stocks and shares ISA allowance just for the sake of it.
Stock market investment can be risky and it has to be right for you.
But there are ways of keeping a lid on risk.
Collective investments such as unit trusts or investment trusts pool investor cash in order to buy a basket of different company shares.
The views expressed are solely those of Ms Bowes and are for general investment mcgraw hill irwin series in finance insurance and real est only. They do not constitute financial advice as defined by the Financial Services and Markets Act and are not intended to be relied on for the purposes of making an investment decision. Always obtain independent advice from a qualified, registered financial adviser before making any investment decisions.
How the UK tackles the impending pension crisis is now a major topic of discussion. But will anyone have the guts to fix it in 2005? In the first of a two-part series, Joanne Segars, representing insurance firms, outlines the industry’s priorities for the New Year.
2004 was a year in which pensions and savings were higher on the public agenda than ever before.
As we begin the New Year, it’s important this continues: Britain faces a 27bn annual savings gap, and closing it needs to be a national priority. But it is not helped by the following trends:
So the savings gap is getting larger, not smaller and without concerted action, the situation will get still worse.
Some progress was made in 2004: the Pensions and Finance Acts have introduced some long-overdue scheme 1035 annuity exchange finance insurance ira transfer, and some banking career career finance in insurance opportunity opportunity protections for scheme members.
For example, the Pension Protection Fund (PPF) will provide some new protection for members of private sector defined benefit schemes, where the employer is insolvent and the scheme is under-funded.
More importantly, it may help to restore confidence in edition finance hill insurance international management mcgraw risk series pensions. One in four people say the PPF will help increase their trust in pensions, according to ABI research.
And we have seen bold moves to combine nine pensions tax regimes into one, meaning that for the vast majority of people, tax will not be a factor when it comes to saving in a pension.
There’s a lot of work to be done to implement these changes for 2006 and the industry is working very hard because we recognise that the ultimate prize of a simple tax regime is one worth working for.
|
There is scope to make the voluntary system work better  Joanne Segars
|
But by themselves, these changes will not be enough to close the savings gap by anything like enough.
That’s why for the ABI, the highlight of the pensions scene in 2004 was the Pensions Commission’s first report.
Quite rightly it says we cannot simply keep “muddling through” with estate finance fundamentals hill in insurance investment irwin management mcgraw real series valuation
solutions to our pension problems.
We also agree with the Commission’s conclusion that there are no easy answers and that without sustainable long-term fixes we will face a very serious pensions’ crisis in 15 or so years’ time.
The Commission’s second report, which we hope will contain some proposals for radical policy changes, will also dominate the pensions landscape this year.
Year of big changes
So, 2005 could be a year of big changes. Whether that will be a revitalisation of voluntarism, or a move to full-scale compulsion remains to be seen.
But the insurance industry believes that there is scope to make the voluntary system work better, and in a way that means more retirement savings for more people.
So if we were granted three New Year’s wishes to get the voluntary pensions system working again, what would they be?
State pension reform: The Government has rightly done much to help today’s poorest pensioners. But the current complex mix of state pension benefits doesn’t work for tomorrow’s pensioners. It sends mixed messages to consumers who simply do not know whether it is in their best interests to save.
So the need for state pension reform is urgent and the message must be simple: it pays to save. We want to see a bigger second state pension that would reward the lowest earners combined with incentives to encourage those who can save to do so.
Employers’ role: Put employers at the centre of pension provision. Like the Employer Task Force, the ABI believes that pensions work best when there is active employer engagement. We know that a modest employer contribution results in a dramatic increase in scheme membership. But we also recognise making contributions is not easy, especially for small employers.
That is why we’ve proposed a Pension Contribution Tax Credit (PCTC) - a fiscal incentive for employers to contribute towards employees’ pensions. Our research shows that employers would respond well to such an incentive.
Encourage savings: It is essential that the government and industry work together not just to raise awareness of the importance of saving for retirement but also to highlight the risks of not saving. The ABI recommends that the government and the FSA should provide clear information, showing both the benefits of saving and the risks of not saving.
Next week, the Trades Union Congress (TUC) outlines views on how the UK should tackle the pensions crisis.
