News in brief 17 August

The ITN Limited Pension Scheme has appointed Trafalgar House to provide administration services to its 1,500 defined benefit members, representing over £300m in assets. Commenting ITN Limited Pension Scheme chairman of the trustees Martyn Hurd said: “Whenever you look for a new provider, you are always hoping to find a long-term partner that will genuinely share your values - and that is exactly what we found in Trafalgar House. They have already proven that we made the right decision, sharing our ‘can do’ approach throughout the process.”

On average, over 55s have £283,206 worth of equity in their homes, according to the latest data from SunLife. The data revealed that, on average, people aged 55 and over who own their own home have properties worth £290,659, with a majority of them owning their homes for over 20 years, with the average property bought in 1994. In 1994 the average home was worth £51,633, meaning an increase in value of a huge £239,026. The vast majority (82%) own their homes outright, while those who do have an outstanding mortgage only have £55,044 left to pay, less than a fifth of the total value. These statistics illustrated that all of those surveyed have an average of £282,623 of equity sitting in their homes, and eight in ten have the full £290,659.

AJ Bell has warned that the government will risk a backlash from younger voters if it “caves to pressure” to scrap the Lifetime ISA (LISA), a product created in 2016 to help younger people save for a first home or retirement. Specifically, the LISA was criticised for being unpopular, too complex, while also having “perverse incentives” and not complementing traditional pensions. Commenting, AJ Bell senior analyst Tom Selby said: “The Government will cause uproar among younger voters if it caves in to pressure to scrap the Lifetime ISA. The product has been a hit with consumers so far and it would be ludicrous to pull the rug from under people now.”

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