Pensions Buzz

More than two thirds of respondents believe the cost of equalising guaranteed minimum pensions (GMPs) will exceed the monetary risks posed.

Most Buzz respondents were fairly relaxed over the exit fees charged by some third party administrators (TPAs). Although 28% of contributors said these were impeding trustees who wanted to switch providers, 34% said this was not the case.

Contributors enthusiastically backed the latest call for a single regulator for all workplace pensions. More than three quarters said this was the way forward, while fewer than one in five backed the current system.

Buzz respondents were split equally over the prospect of scrapping compulsory limited price index (LPI) inflation protection for DB schemes.

Taxing surpluses was the measure introduced in the 1980s that most respondents wished had never happened.

Just over half of respondents were concerned there was insufficient competition in the bulk annuity market, while 37% said the dominance of a handful of big players was not worrying.

The question of whether pensioners should be taxed more heavily than they are at present split Buzz respondents fairly evenly.

Buzz respondents did not have much time for the suggestion that Scotland should have a different state retirement age to the rest of the country.

More than two thirds of Buzz respondents believe the government should set minimum standards for schemes that qualify for use as auto-enrolment vehicles.

This week respondents pinpoint where it all started to go wrong for defined benefit, share concerns over the bulk annuity market, and rubbish the suggestion Scotland should have a lower state pension age.