Brendan Burgess
Founder
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Title edited for clarity - Brendan
Unless the failure to equalise tax relief on contributions between RAC's ( Personal pensions) and PRSA's is addressed, there is a going to be a stampede to PRSA's. Meanwhile, the Pensions Board (whose PRSA head is ex Central Bank), hasn't seen fit to impose a compulsion at point of sale to put the "Standard" pricing model side by side with the higher, ( or lower) commission non-standard type. Most sales will be of the latter type, just as 90% endowments outsold 40% endowments despite better numbers and past performance during the last miselling scandel. Instead the PB believes it can bypass the sales patter with advertising and PR, getting 0.50m yesterday.
This won't work. Hasn't a snowballs chance of outshouting the combined marketing power and salesmanship of the sales forces concerned.
The result is, I believe, a miselling scandel of large proportions as personal pensions and AVC's are replaced with, mostly, non-standard PRSA's. The smokescreen will be higher relief to the 30 to 50 year olds. The Minister needs to stop listening to the Pensions Board who are in favour, it seems of a tax relief differential, and start using his instincts. This differntial will simply trigger substitute selling, and will have zero impact on the non pension market. It will be addressed in the Finance Act
if there is enough people warning about this potential scandel in the brewing.
Any takers - what do you think?
Unless the failure to equalise tax relief on contributions between RAC's ( Personal pensions) and PRSA's is addressed, there is a going to be a stampede to PRSA's. Meanwhile, the Pensions Board (whose PRSA head is ex Central Bank), hasn't seen fit to impose a compulsion at point of sale to put the "Standard" pricing model side by side with the higher, ( or lower) commission non-standard type. Most sales will be of the latter type, just as 90% endowments outsold 40% endowments despite better numbers and past performance during the last miselling scandel. Instead the PB believes it can bypass the sales patter with advertising and PR, getting 0.50m yesterday.
This won't work. Hasn't a snowballs chance of outshouting the combined marketing power and salesmanship of the sales forces concerned.
The result is, I believe, a miselling scandel of large proportions as personal pensions and AVC's are replaced with, mostly, non-standard PRSA's. The smokescreen will be higher relief to the 30 to 50 year olds. The Minister needs to stop listening to the Pensions Board who are in favour, it seems of a tax relief differential, and start using his instincts. This differntial will simply trigger substitute selling, and will have zero impact on the non pension market. It will be addressed in the Finance Act
if there is enough people warning about this potential scandel in the brewing.
Any takers - what do you think?