MacGillivray Blog: AMPS conference a great success

This year's AMPS annual conference was a great success with a 120 attendees and a wide and varied range of subject matter covered. As always there were number of topics which will be of interest to advisers. Adrian Boulding, pensions strategy director at Legal & General, gave an insightful and entertaining view of the new retirement income market. Though product providers in the UK appear to be slow in introducing new income solutions he focussed on what currently happens in Australia and the USA where full access to pension funds have been available for some time.The Australian concept of 'bedrock income' relies on the member securing a basic guaranteed income throughout their retirement with an additional fixed income over, say, the first ten years of retirement to cover the enhanced lifestyle they want in early retirement. Any remaining funds would continue to be held in drawdown as a reserve to be called upon as required. The US concept, on the other hand, relies on longevity insurance.{desktop}{/desktop}{mobile}{/mobile}Here the member decides the amount of income his pension fund can provide before being cleared out at age 85, for example. To cover the potential of a need to secure an income post 85 they will purchase longevity insurance, either by paying a one off premium on retirement or paying a monthly premium from retirement.At this early stage it is difficult to see where the UK market is going, but one reassuring point is that those who have taken reasonable steps to save for their retirement are taking a cautious approach. So no record of funds being used to purchase the now infamous Lamborghini, though Mike Morrison from A J Bell did mention he had heard of one individual who had encashed his pension to help secure himself a much younger wife from Thailand.Sean Browes of Dalriada Trustees shared his experience in dealing with the fallout of pension liberation. It is estimated that £3bn will have been liberated by 2018 with the bulk of this money disappearing into the ether with no chance of recovery. It was clear from the discussion that followed that the introduction of the pension freedoms and with a lack of appetite within the pensions industry to accept DB to DC transfers leaves another door for scammers wide open.Continuing on the subject of DB to DC transfers, Nick Bamford of Informed Choice, in his presentation covering an adviser's perspective on the new pensions world spoke of the problem of dealing with the 'insistent' client. His view was, even if he sympathised with his client's desire to transfer out of a DB scheme, there were limited situations where he could justify advising to do so, potential marriage plans being one, and he is sure the provider of his indemnity cover would agree.HMRC were present and covered the introduction of the Scottish Rate of Income Tax, which comes into effect on 6 April 2016. Although advisers based south of the Scottish border may think it has no impact on their clients they should note that it is based on an individual's residency and not from where they may actually work. The changes will impact on self assessment, pension relief at source and PAYE.{desktop}{/desktop}{mobile}{/mobile}In relation to the Sipp market, John Moret of MoretoSIPPs provided his list of changes he would suggest to new Pensions Minister Ros Altmann. No 1 request was to abolish the life time allowance; 90% of those attending the conference agreed. Regretfully, though Ros may be able to influence such a decision and appears to favour such a step, the Treasury, under whose remit this actually falls, may have a different view.And finally, who says the FCA does not have a sense of humour? Maggie Craig, head of savings, investment & distribution, strategy and competition division who was providing a regulatory update, commented that she was surprised there were so many Scots present at the conference as she assumed that most were now based at Westminster.That statement did set me thinking about Scottish Westminster MPs not being able to vote on the rate of tax that will apply to them. Is this not a contradiction of 'the West Lothian question'? Answers on a postcard please.

MacGillivray Blog: AMPS conference a great success

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