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Standard Life Reveals One In Eight UK Adult Can’t Wait For Greater Reward

Standard Life, the long term savings and investments specialist, has conducted a poll and found that one in eight of UK adults adopt a ‘live for the moment’ culture and would choose the instant gratification of a £640 holiday this year, rather than be willing to wait five years for a holiday worth £5,000 instead.*

The figures come from Standard Life’s UK-wide poll and prize draw**, in partnership with boutique hotel specialist i-escape.com, which investigates the nation’s attitudes to planning for the future. Entrants have to vote on which prize they would prefer; a short break this year worth £640, or a holiday of a lifetime in five years time worth £5,000.

Standard Life’s John Lawson said: “Planning five years ahead is something many people find difficult to imagine or do their best to avoid. Our poll shows that some people just seem too impatient to wait for greater rewards in the future, no matter how enticing they are. But being patient and taking a long term view on your finances is precisely what helps you achieve your goals and, ensures you remain financially secure. It might seem easier to take a short term view, but unless you plan ahead how else can you look forward to your future with confidence and optimism?”

Standard Life also points out that if everyone was this impatient, the world would be a far different place. If one in eight of the doctors employed by the NHS weren’t patient enough to finish their studies, the UK would have 14,061 fewer doctors**. Inventions such as the Dyson vacuum cleaner may also have never been made if the inventor Mr James Dyson has been impatient, as it took five years to develop the iconic bagless vacuum cleaner***.

Via EPR Network
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Not All NAIC Suitability Training Solutions Are Created Equal

With the Iowa Suitability Requirement becoming active on January 1, 2010 there is no doubt that insurance carriers are scrambling to find the best solution. While most solutions are similar in that they will offer State Specific Training and Carrier Specific Training the means and methods in which they deliver the training will differ from provider to provider. Quest is proud to offer the industry’s most comprehensive, user friendly and cost effective solution to the NAIC Suitability Regulation.

Using proprietary technology, Quest has the ability to meet each individual carrier’s NAIC Suitability Training needs. While most carriers will opt for a Single Suitability Platform, there are some carriers with captivate agents that would prefer a private label solution. Quest has built their reputation on providing innovative solutions and advanced custom technologies. This custom technology addresses the needs of the carrier wishing to have an NAIC Training portal branded specifically for their company and their producers. A private label solution will match the carriers’ look and feel providing an effective marketing tool and sense of good will with the carrier’s producers. Custom reporting, in addition to daily PGP encrypted data feeds are standard with all of Quest’s learning platforms and will serve as an integral function in both private label solutions and the Single Source Solution.

While other NAIC Suitability Training Providers have turned to their old, outdated technologies to address the growing demand of training required of producers, Quest has specifically designed their NAIC Suitability Training Portals with the users in mind. Quest’s simple three step process allows producers to either self-register for their training or be loaded in on the front end by their carriers. The first step requires the producer to select the State Specific Training required by the NAIC. Currently the only state with a requirement in place is Iowa. The second step asks the producer to select the insurance carriers that they sell for so they can select their Carrier/Product Specific Training at step three. The process is intuitive and seamless. The producer will easily be able to create their user profile loaded with all of the training they need to continue to sell their carriers’ products.

Quest’s system puts control in the hands of the producers. The logic behind this method is that the producer knows better than anyone else which carriers they sell for and which state and product specific training they need to complete. Other vendors trust complicated and incomplete databases which rely on each carriers list of producers to be correct and constantly updated. Quest’s solution allows for flexibility and intelligence so producers are able to use the training portal as a way of updating their own records with the carriers they represent. On demand reporting and daily data feeds will ensure that producers are compliant with their requirements and able to place business with the carriers they represent as soon as possible.

Via EPR Network
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Prudential Reveals 1 In 3 UK Couples Know Nothing About Their Partner’s Finances

Prudential has revealed new research that shows UK couples could be risking poverty in old age because they are failing to talk to one another about financial planning for their retirement.

The study found that nearly a third of couples (32 per cent) aged 40 and above but not yet retired* say they don’t know or understand the details of their partner’s retirement savings, with more than a fifth (22 per cent) saying they have never talked to their partner about financial planning for retirement.

The findings from new research commissioned by Prudential reveal that women are even less likely than men to discuss financial planning for retirement with partners, with almost a quarter of women (24 per cent) saying they have never discussed this, compared to almost one in five men (19 per cent).

And a further 12 per cent of women and 11 per cent of men say they know nothing about their spouse or partner’s finances – and they’re not really interested. This lack of interest could be compounding low levels of financial awareness.

To help people prepare for their retirement, Prudential has produced a decade-by-decade guide to the conversations couples need to have at pru.co.uk/couplesconversations. Suggested subjects include making a will, discussing pensions and how much to save, talking about when to retire, working out retirement income, reviewing total savings, researching annuity options and when to buy, checking National Insurance contributions, talking about housing options, leaving an inheritance, and agreeing on long term care.

Andy Brown, investments director at Prudential, said: “It is incredible that so many people do not know the details of their partner’s retirement savings. Essentially, this could mean millions of UK adults are banking on hope as their core retirement strategy and are approaching what is arguably the most important financial decision without a full understanding of their household financial situation.

Via EPR Network
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Prudential Research Shows Advisers Turn To With-Profits Investments

New research* from Prudential shows that up to a third of advisers expect to recommend with-profits products to clients this year with bonds the most popular.

Prudential Research Shows Advisers Turn To With-Profits Investments

30 per cent of financial advisers expect to advise clients to invest in with-profits products during 2010. Of those, 63 per cent say with-profits bonds are the most popular with clients, followed by with-profits pensions and then with-profits annuities.

Prudential, whose with-profits fund returned 18.9 per cent in 2009** and paid out £2 billion to policyholders, believes with-profits are increasing in popularity as advisers look for investment products which aim to deliver long-term and steady returns.

The research went on to show 82 per cent of advisers believe long-term performance is the most important attribute when recommending investment products which reflects the growing concern about stock market volatility – just 40 per cent of advisers say the majority of their clients are happy to be subject to market volatility when making investment decisions. Around 22 per cent of advisers say only a minority of their clients are now happy to be exposed to market volatility following recent stock market peaks and troughs.

Andy Brown, Director of Investment Funds at Prudential, said: “With-profits sales have strengthened in the past 18 months as investors have looked for more cautious alternatives to pure equity investment and the growing interest looks set to continue into 2010 despite the strong recovery in the stock market.

“Clearly not all advisers are convinced by the with-profits investment story, however not all with-profits funds are the same and it’s important that investors are not misled by generalisations about the performance of these products. Our consistent approach to smoothing and bonus setting has served our policyholders well, protecting them from the full impact of volatile investment conditions while giving them the confidence of knowing that their savings are invested in a financially strong and well-managed Fund.”

Of those advisers who would recommend with-profits to their clients, 53 per cent said that financial strength was the most important factor when considering a with-profits provider.

Via EPR Network
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Retiring Brits Concerned For Health Not Wealth

Prudential has revealed the results of a new survey* that shows failing health tops the list of fears about retirement. The survey found that people planning to retire in 2010 worry more about ill health than having enough money to live on.

Retiring Brits Concerned For Health Not Wealth

Two-thirds (66 per cent) of people approaching retirement fear their health deteriorating, while more than half (55 per cent) worry about not having enough money to be able to enjoy themselves or do the things they want to do. A similar number (54 per cent) say they are concerned about the rising cost of living.

Women appear to worry about their health and money more than men. Almost three-quarters of women (71 per cent) are concerned about their health deteriorating as they get older, compared to 62 per cent of men.

Karin Brown, director of pensions and annuities at Prudential, said: “In reality, people need to be equally as concerned about their money as their health in retirement, particularly women, as we know from our own research that women get less in their pensions than men. It’s totally understandable that people would worry about their health worsening as they get older but without having sufficient money to enjoy retirement and actually keep healthy, there is little to gain from worrying about health.

“There is a direct link between financial security and health and so if you are well prepared financially for your retirement and put yourself in a position where you can live comfortably and have enough money to keep you going, then your health is less likely to be an area of serious concern. You don’t have to be super-rich to enjoy a financially secure retirement. It just takes a bit of careful planning and the earlier you start the better.”

Via EPR Network
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Workers Beyond Retirement Age To Double In 10 Years

Prudential has revealed that UK businesses are bracing themselves for a surge in staff looking to delay retirement with around 1.8 million people expected to be working beyond traditional retirement ages in just 10 years.

The findings from new research commissioned by Prudential among finance directors at UK businesses found 24% of companies expect staff to work beyond retirement age in the next 10 years, with the proportion of people in the workforce who are past traditional retirement ages expected to more than double to 1.8 million people.

Larger companies expect to see an even greater proportion of their workforce working beyond retirement, with 39% of finance directors at larger firms expecting to have to accommodate requests from staff to work longer.

UK companies anticipate this will mean around 6.3% of their workforce (equivalent to 1.8 million people across the UK working population) will be made up of people working beyond statutory retirement ages in 10 years, more than double the current proportion of 2.6% of company workers (equivalent to around 752,700 people***) who currently work past retirement.

The study also found that in the past 12 months alone, 7% of finance directors have reported an increase in the number of employees asking to work past traditional retirement ages.

Martyn Bogira, Prudential’s Director of Defined Contribution Solutions, said: “As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made.

“The statutory retirement age for men and women is due to rise to 68 by 2046, so working longer will be a fact of life for those entering the workforce today but these findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this. Employers have told us that their staff costs could rise as their employees work for longer.

“Workers face the stark choice of either having to save more for their pension from an earlier age or having to work longer if they are to avoid taking a significant drop in their standard of living in retirement. Early pension saving is critical and we strongly encourage people not to delay starting a pension.”

The research also identified a clear North/South divide. Companies in the north of the country expect an average of 16.2% of their staff to work past the statutory retirement age compared with an average of 2.4% in Greater London and the South East.

Via EPR Network
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