IP: Lump sum from mutuals can 'make good' state pension shortfall

Following our coverage this week highlighting that increases to the state pension age have meant that income protection (IP) policies are lapsing before policyholders reach retirement, chief exec of the Association of Financial Mutuals (AFM) Martin Shaw has pointed to IP lump sum payments as a helpful solution. Available only through mutuals, the ‘Holloway variant' of IP could help make up the ‘shortfall' created by the rising retirement age, he said. "This issue is not of insurers' or intermediaries' making, but it is important that they respond and help customers understand the impl...