Issue 27 / March 2017
EDITOR ’ S LETTER
Can the Lifetime ISA compete with pensions ?
MY CUP RUNNETH OVER
How to avoid breaching pension allowances
DODGING THE BULLETS
Sidestepping volatility will be key for bond funds
DOES SIZE MATTER ?
Economies of scale in DC pension schemes
ISSUE 27
CREDITS
TRUSTNET MAGAZINE ( FORMERLY INVESTAZINE ) IS PUBLISHED BY THE TEAM BEHIND FE TRUSTNET IN SOHO , LONDON .
WEBSITE : WWW . TRUSTNETDIRECT . COM EMAIL : EDITORIAL @ FINANCIALEXPRESS . NET
CONTACTS :
Anthony Luzio Editor T : 0207 534 7652
Art direction & design Javier Otero W : www . feedingcrows . co . uk
Editorial Gary Jackson Editor ( FE Trustnet ) T : 0207 534 7680 Rob Langston News editor T : 0207 534 7696 Lauren Mason Senior reporter T : 0207 534 7625 Jonathan Jones Reporter T : 0207 534 7640
T HE COVER STORY OF THIS ISSUE asks
whether the Lifetime ISA , set to be launched in a matter of weeks , will be able to compete with pensions as a vehicle for retirement saving . Most experts are leaning towards a “ no ” answer – at least for now .
The reasons are obvious . Most people don ’ t have the discipline to set money aside for their old age and when it is not automatically removed from their salary , as is the case with pensions , there always seems to be a more pressing use for it . The ability to use a Lifetime ISA to fund the purchase of a first home complicates matters further .
However , as Pádraig Floyd notes in the feature My Cup Runneth Over , the government ’ s inability to stop tinkering with pension rules means the number of people breaching annual and lifetime limits is on the rise . It will be politically much trickier to mess with the easy-to-understand ISA . Meanwhile , Maggie Williams finds that you have few options if you are unhappy with aspects of your company ’ s auto-enrolment scheme .
There are other reasons why it makes sense to use a product that gives you more control – as Henderson ’ s Tim Stevenson puts it : “ I keep telling my children : ‘ Forget it . The government will be bankrupt by the time you retire . If you don ’ t save for your own retirement , you ’ ve got a real problem .’”
Some guidance on what to populate an ISA with can be found in our usual features – Fidelity ’ s Alex Wright highlights three defensive stocks that can also be classed as value trades , 4 Shires ’ Jeremy Le Sueur points to a high-growth trust on a 19 per cent discount and Adam Lewis shines the sector-focus spotlight on bond funds .
Enjoy reading ,
Anthony Luzio Editor
Trustnet Magazine
Sales Richard Fletcher Head of publishing sales T : 0207 534 7662 Richard Casemore Account manager T : 0207 534 7669
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