OMO more important than pensions/earnings link- McPhail

Laura Miller
clock

Re-linking pensions with earnings will not profit retirees as much as knowledge of the open market option (OMO), says Hargreaves Lansdown's Tom McPhail.

Both the Tories and Liberal Democrats have pledged to immediately restore the link between the basic state pension and earnings if they take power on 6 May. But head of pensions research McPhail, who is also chariman of the Pensions Income Choice Association, says if politicians want to support people better in retirement they should push the OMO, instead of point-scoring over the earnings link. "Shopping around for a pension will deliver a more significant improvement in provision over the next five years, the life of the next Parliament, than re-linking pensions with earnings," McP...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •