Latest press releases

Advisers are feeling more confident about the UK economy but unemployment and government spending cuts are of growing concern, according to Skandia’s latest Adviser Confidence Barometer*. The survey showed a 13% increase in confidence in the first quarter of this year compared to the last quarter. Advisers rated their confidence as 5.2 out of 10 (10 being most confident), up from 4.6 in Q4 last year.

People with ‘enhanced protection’ on pensions valued up to £1.8 million could benefit from switching to fixed protection before the tax year end deadline. If they continue with enhanced protection, their maximum tax-free cash allowance will fall to £375,000 from 6 April, which is 25% of the reduced £1.5m Lifetime Allowance (LTA). However, if they switch to fixed protection then the maximum tax-free cash available would remain at £450,000, which is 25% of the current £1.8m LTA, resulting in an extra £75,000 in available tax-free cash.

With rumours around the removal of the 50% tax rate and the reduction of the annual allowance, Skandia predicts that significant numbers of higher and additional rate taxpayers will use the coming weeks as an opportunity to maximise their contributions, and will then opt out of the pension system by applying for fixed protection. Once these wealthy individuals have opted out of the system, there will undoubtedly be a lower cost to the government going forward as the amount of tax relief they give away will reduce.

Investors sought out equity income funds and opted for lower risk bond funds with their ISAs during January, signalling a cautious start to this year’s ISA season. 

Investors sought safe haven in Cash and Global Fixed Interest funds largely at the expense of equities during 2011, suggesting that there is a wall of money waiting to be switched into equity funds as confidence returns, according to Skandia International’s analysis of its customers’ investment behaviour.

On 6 April 2012 the lifetime allowance (LTA) for pensions is due to decrease from £1.8m to £1.5m. People aged 55 or over with pension savings that could reach £1.5m have the opportunity to maximise their available LTA provided they take action prior to 6 April 2012.

People who are eligible for flexible income drawdown on their pension savings can use the scheme to significantly reduce their inheritance tax liabilities, according to investment specialist Skandia.

Skandia International, the offshore business of Old Mutual Wealth Management, announces the launch of the Royal Skandia GBP Protected FTSE TM 100 Fund.  The aim of the new fund is to offer full capital protection and an investment return of 152% of the average growth of the FTSE 100 index when held for five years until maturity. The fund, which is predominantly aimed at Sterling investors, could be attractive to those concerned with the current volatility in world stock markets but still want the potential to benefit from any future increases in valuation levels.

The latest 15 year gilt yield has fallen to a new record low of 2.25%, which will lead to a lower income for people retiring today, whether it be via a smaller annuity income or a lower maximum income level in income drawdown. 

On 1 January 2012, the Spanish personal income tax regime was temporarily modified resulting in a rise in income tax for 2012 and 2013. This increase, however, will have little or no impact on tax-compliant bonds sold in Spain if they are not encashed until 2014 - according to Skandia International. This is in contrast to non tax-compliant bonds which are required to withhold tax each year.