Warning over 'burden' of reformed pensions

The Treasury has dismissed warnings that pensioners could be left at greater risk from 'poor decisions' following the major reforms to retirement savings announced in yesterday's Budget.

Latest ITV News reports

Advertisement

Advertisement

Pensions providers' shares take a hammering

Pensions providers and insurers have taken a hammering on the stock market as investors counted the cost of George Osborne's "Budget for savers".

In a session when the FTSE 100 Index ended 32.2 points lower at 6,573.1:

  • Legal & General dropped 19.3p, or 8%, to 211.2p
  • Aviva fell 26.6p, or 5%, to 490.4p
  • Standard Life declined 11.4p, or 3%, to 354p.
  • Prudential slid 29p, or 2%, to 1,339.5p

Meanwhile on the FTSE 250, Partnership Assurance, which provides enhanced annuities for people with lower life expectancies, lost more than half its value, plummeting 176.2p, or 55%, to 143p.

DeVere Group slams 'short sighted' pensions changes

Nigel Green, chief executive of one of the world's largest independent financial consultancies, has slammed George Osborne's decision to lift pensions access restrictions, calling it "dangerous," "short sighted" and "ill-conceived".

Mr Green of the deVere Group said after the Budget announcement:

This move to scrap the restrictions is in direct conflict with the spirit and purpose of pensions - which is to provide the individual with an income throughout their retirement.

It’s a depressingly short sighted approach from the Treasury.

Load more updates