Three things we learned this week

Retirement Planner's round up of the top pensions stories of the week.

Long-term care funding should take note from pensions

Long-term care funding has a lot to learn from "how the pensions debate has moved on", says Association of British Insurers director of general insurance and health, Nick Starling.

 At this morning's Health Committee on social care, Starling compared the Dilnot Commission with the Pensions Commission and said he hoped to see parliament move beyond party political constraints to address the social care funding shortfall, as had happened with pensions.

This would be a starting point to "start to build awareness and consensus and a realisation from people how to meet their own needs."

To read more, click HERE

Pension fund managers 'hiding' £3.1bn trading costs

Pension fund managers are creating £3.1bn in undisclosed extra costs to consumers by excessively trading assets, new research has suggested.

SCM Private claimed it found pension funds hold assets for an average of nine months, with trading costs on average 0.7% of the fund per year, or £3.1bn across the industry.

The wealth manager said this level of trading and cost is unnecessary because similar returns can be obtained by investing in index funds, according to its research.

To read more, click HERE

Sargisson: Falling value of SIPP firms will stall takeover deals

The consolidation of the SIPP provider space will be stalled by the declining value of some firms, according to Tim Sargisson, managing director of James Hay Partnership.

Rising regulatory costs are encouraging smaller SIPP providers to sell up to larger firms, Sargisson said, but warned the process will not be as smooth as expected.

"Small providers are thinking ‘enough is enough' and attempting to cash in now," Sargisson said.

To read more click HERE