Pension warnings ‘ignored’

Friday 12th January 2007, 12:00AM GMT.

FINANCIAL advisers say they have been warning States politicians about a possible pensions crisis for several years – but no one has heeded their caution.

As reported on Wednesday, Islanders are currently facing the prospect of being unable to take out a personal pension because the only remaining provider, Norwich Union, is closing to new pensions and annuities business from the start of next month. The decision also affects Guernsey and the Isle of Man. Existing customers and group pensions will not be affected and Norwich Union will continue to offer their other insurance products, such as critical illness cover, through Island brokers. Treasury Minister Terry Le Sueur said he intends to bring changes to the Income Tax Law to the States in order to attract alternative pensions companies, but that could take up to six months including law drafting time.

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