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.

 

More on Pensions

Reeves to consider £2bn raid on tax-free pension lump sum

Reeves to consider £2bn raid on tax-free pension lump sum

Telegraph reports PCLS cut could help plug £50bn public finances hole

Jonathan Stapleton
clock 21 August 2025 • 3 min read
State pension age review: Govt launches call for evidence

State pension age review: Govt launches call for evidence

UK faces long-term demographic pressures

Jenna Brown
clock 18 August 2025 • 2 min read
'Barriers are institutional, not technical': Industry split over ten-day pension switch proposal

'Barriers are institutional, not technical': Industry split over ten-day pension switch proposal

After PensionBee calls for a legally enforceable transfer guarantee

Sahar Nazir
clock 18 August 2025 • 2 min read

In-depth

Targeted support: 'Watch this space!' – unknowns persist

Targeted support: 'Watch this space!' – unknowns persist

Industry awaits final details of the FCA’s proposals

Isabel Baxter
clock 19 August 2025 • 7 min read
Polling high – should advisers bank on Reform UK holding on?

Polling high – should advisers bank on Reform UK holding on?

Nigel Farage-led party's policies would likely mean big tax changes if Reform came into power

Isabel Baxter
clock 30 July 2025 • 7 min read
Financial planning 'badly' needed PFS £1m talent pledge – what next?

Financial planning 'badly' needed PFS £1m talent pledge – what next?

Considerations include representation, showing not telling, and small business support

Jen Frost
clock 29 July 2025 • 6 min read