A special report titled ‘Easy PC’ addressed the ‘minefield’ of the financial software market, as we look back to the September 1988 edition of Money Management. According to the report, the use of computer systems was still in its infancy, especially as a whopping 75 per cent of small businesses operated without a computer at all. “I hate computers but they are a necessity of life,” explained one of the featured experts. Love them or hate them, he clearly knew they were here to stay.
Allied Dunbar was a huge industry presence back in the ’80s and was seen as having one of the most technological literate salesforce’s as all advisers had access to a branch-based computer. With digital advice platforms coming to the fore in 2016, computers will no doubt continue to form to be a prominent part of the advice process.
‘Annuities: not as popular as in Dickens’ day,’ claimed anpther feature in the magazine. It went on to explain how annuities had become more flexible to meet changing consumer demands for retirement income. The two main types: compulsory purchase (CPA) and purchased life (PLA) were detailed, as well as back-to-back schemes, which were popular in the ’60s and ’70s. These vehicles were a method of escaping death duties, as any investment would purchase a temporary annuity, which would immediately reduce the estate value by the annuity purchase price.
Uncertain equity markets, rising interest and low inflation were all listed as good reasons to purchase annuities in 1988 and rates of over 11 per cent were available on a joint life basis. The introduction of the pension freedoms in 2015 was expected to hit the annuity market hard as consumers finally had access to full flexibility with pension funds. But volatile financial markets have also been a key driver behind a recent surge in annuity sales, showing that there will always be a place in the market for guaranteed retirement income.
Finally, ‘Taking stock’ featured analysis from a familiar name in Russell Taylor, who still contributes today. Russell provided his usual expert view on economic and market trends.
In other news...
‘Groovy Kind of Love’ by Phil Collins was number one on the charts.
Sprinter Ben Johnson was stripped of his 100m gold medal after testing positive for the banned substance, Stanozol.
and ‘Die Hard’, starring Bruce Willis and Alan Rickman, was released in cinemas..... Yippee Ki Yay!
More Back in the Day...
