October 2010

Skandia has seen investments in its Maximum Investment Plan (MIP), a regular premium savings plan, increase by 134% over the last year* and expects this to grow further following recent changes to pension tax relief.

Nearly three quarters of advisers are spending more time today revising and explaining investment risk to investors than they did three years ago, according to a survey by Skandia.

Sales of cash and money market funds dropped by almost half in the third quarter of the year, mainly to the benefit of UK fixed interest, UK Equity and Global Specialist funds. Skandia’s Investment Trends study shows that UK Fixed Interest funds remain the strongest selling sector via the Skandia Investment Solutions platform.

Having savings of up to £5,000 would bring happiness to 4 out of 5 people, according to research from investment company Skandia.

Financial advisers need to act now to ensure that clients’ pension input periods are aligned with the tax year in case the Government introduces the proposed cap on annual tax-relievable pension contributions. If they take no action, clients making pension contributions now could end up with unexpected tax charges next year.