For 18 months now, Sensible Investing.TV has been calling for reforms to the UK investment industry. Progress has been painfully slow.
But – would you believe it? – in the space of a few days, the Government has announced five key changes. And all of them are positive developments.
To explain what those developments are and what they mean, here’s someone else who campaigns on behalf of the ordinary investor – Dr Ros Altmann.
The five key changes are:
1. ISAs are to be more attractive – from $5,000 now $15,000; fewer restrictions
2. Pensions are to be more flexible
3. Buying an annuity will no longer be compulsory
4. Charges on auto-enrolment pensions are to be capped –
5. Pension fund charges are to be more transparent – after 2015, spend as you wish up to your marginal tax rate
So, plenty to cheer about, but there’s still a long way to go. Not until charges on all funds are fair and transparent will we stop
campaigning for a better a better deal for consumers.