February, 20, 2010

The Conservative Party has been urged to forge closer links with the financial services industry to help it develop its savings policies.Industry figures say a speech by George Osborne, delivered at the British Museum last week, contained some 'encouraging' ideas on improving Britain's savings culture.However, Conservative policy on improving long-term savings is lacking in detail, and Osborne will need to work closely with finance professionals to create a system which works.

One of Osborne's headline policies, a change in the age-75 rule, which forces people to buy an annuity or use the heavily-taxable alternatively secured pension (ASP) when they reach 75, is not detailed according to income drawdown providers.John Moret, head of marketing at Suffolk Life, says politicians tend to ignore ASP and, as such, fail to understand the real issues facing people who don't want to buy an annuity.

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