Money Marketing’s Weekly Must-Reads: Top 10 Stories
This week’s top stories: Mark Dampier questions whether private pensions are on their last legs, while the Chancellor’s inheritance tax plans for pensions come under fire. Plus, the latest industry news you need to know.
Mark Dampier: Is this the final nail in the coffin for private pensions?
Mark Dampier reflected on how pensions have evolved, from the unregulated ‘Wild West’ of the 1980s to today’s complex system.
While the financial-services industry has improved, he argued that government changes – such as the removal of IHT exemptions and double taxation – are undermining private pensions. He warned that these policies discourage long-term saving and create administrative burdens for grieving families.
Comparing private pensions to generous public-sector schemes, he suggested reform is unlikely unless MPs experience the same pension challenges as the public.
Treasury Committee demands clarity over FOS chief’s departure
The Treasury Committee sought clarity from the FCA and FOS regarding chief ombudsman Abby Thomas’ sudden departure.
During a parliamentary session, MPs expressed frustration over vague responses. Chair Dame Meg Hillier requested details on the timeline, FCA involvement and any severance payments. The FCA must respond by 18 February, while the FOS was asked about internal concerns and legal restrictions on Thomas speaking out.
The inquiry follows confirmation that FOS chair Baroness Manzoor will step down in August 2025.
Chancellor’s plan for IHT on pensions is ill-thought out
Chancellor Rachel Reeves aimed to reset economic policy but faced criticism over her plan to introduce inheritance tax (IHT) on pensions from 2027.
Andy Bell argued the proposal would deter investment, complicate probate and create double taxation for beneficiaries. He suggested alternative approaches, such as taxing pensions through income tax or a flat rate, to simplify the system.
Bell warned that if Reeves fails to revise the plan, her pro-growth stance may prove to be mere rhetoric rather than action.
Baroness Manzoor to step down from Financial Ombudsman Service
Baroness Manzoor announced she would step down as chair of the Financial Ombudsman Service (FOS) when her term ends on 1 August 2025.
Her departure followed chief ombudsman Abby Thomas’ resignation amid board disputes. Manzoor, who led the FOS since 2019, highlighted operational improvements and consumer safeguards during her tenure. She emphasised the need for technology-driven efficiency.
The Financial Conduct Authority’s chair praised her leadership, and the FOS confirmed that recruitment for her successor would begin soon.
Record year for annuity sales driven by financial advisers
Financial advisers contributed to a record year for annuity sales in 2024, with insurers selling £7bn in annuities, a 34% increase from 2023, according to the Association of British Insurers.
Competition in the annuity market thrived as more consumers sought financial advice, with 36% receiving guidance compared to 29% in 2023. Seven in 10 retirees switched providers for better deals.
Just Group’s Stephen Lowe highlighted regulatory focus shifting to the drawdown market, where comparisons remain challenging for consumers.
British veteran wins £92,800 after being misled over armed forces pension
A British Armed Forces veteran won £92,802 in compensation after being misled into transferring his pension in 1993.
Advised by Royal Life, now Phoenix Life, he believed the move would provide better returns, but it resulted in nearly £93,000 in lost funds. Phoenix Life initially rejected his claim but later admitted fault after reviewing address records. Spencer Churchill Claims Advice helped him secure compensation.
Experts warn many veterans may have been similarly mis-sold pensions and should review their cases.
How new financial advisers can navigate the challenges of entering the profession
New financial advisers face challenges entering the profession, with many struggling to gain experience.
Academies offer a structured route, as Jordan Clark discovered at St James’s Place. The journey involves rigorous exams, business planning and self-sufficiency. Many new advisers underestimate the difficulties of securing clients. Support, such as Quilter’s lead generation scheme, can ease this burden.
Clark advises networking early, having financial reserves and staying authentic. Persistence is key, as success leads to a rewarding, flexible career in financial advice.
MetLife UK announces key leadership appointments
MetLife UK announced strategic leadership changes to accelerate growth and strengthen market positioning.
Adrian Matthews became deputy CEO, overseeing distribution, product and marketing, leveraging prior roles as head of employee benefits and CFO. Charlotte O’Brien was promoted to head of employee benefits, focusing on sector growth after seven years at MetLife, including portfolio retention and sales roles. Rich Horner leads transformation initiatives to enhance competitiveness.
CEO Dominic Grinstead emphasised these appointments align expertise with five-year growth plans, innovation and customer-centric adaptation, reinforcing MetLife’s market agility and value delivery.
Consolidator Shackleton acquires Norfolk-based advice firm
Consolidator Shackleton acquired Norfolk-based Harrold Financial Planning (HFP), expanding its East England presence to accelerate nationwide growth.
Backed by Sovereign Capital’s 2021 £55m investment, Shackleton has completed 16 acquisitions since, adding £300m AUM. Launched in December 2024, the group unites firms under an integrated model.
CEO Paul Feeney welcomed HFP, aligning with their goal to be Britain’s most trusted adviser. HFP directors Neil Warne and Robyn Lovatt emphasised shared ethos and client care. Buyside assistance came from Crowe, TCC and Pinsent Masons.
Three estate planning opportunities for 2025
In 2025, inheritance tax (IHT) changes will impact estate planning. Advisers should prioritise three key opportunities: pension planning; business relief (BR) investments; and maximising BR allowances.
Changes to pension treatment will require a shift in strategies, with clients considering pension drawdown or using tax-free lump sums for IHT planning. The new BR lifetime allowance provides more certainty, allowing tax relief on unquoted BR investments.
Lastly, working with providers, such as Octopus Investments, will strengthen estate-planning businesses.
