A spring in the step of the Prancing Horse

Ferrari goes from strength to strength

The UK may have entered a double dip recession but that doesn’t seem to have impeded the spring in the step of the Prancing Horse.

While the rest of us are counting the pennies and praying the motor gets through its next MoT, luxury car brand Ferrari goes from strength to strength.

Perhaps the super rich, put off philanthropy by the Government’s tax shenanigans, have decided to splash out on 200 grand sports cars instead.

Ferrari grew UK sales by 31 per cent in the first quarter of the year with 177 models delivered to customers. This performance outstripped encouraging results in other markets, which saw sales rise 16 per cent in the USA, 24 per cent in Germany and 23 per cent in the Middle East.

Overall, revenues were up 13 per cent to 556m Euro with net profit leaping 17 per cent to 42m Euro.

Ferrari said the success resulted from enthusiasm for the 12-cylinder FF, the continuing popularity of the 8-cylinder California, its top selling GT, and demand for the coupe and spider versions of the 458 sports car. Ferrari pointed out that the F12 Berlinetta, its most powerful ever model and the first in a new generation of V12s made no contribution to the first quarter results as deliveries do not start until the second half of the year.

In its native Italy however, the Fiat-owned marque suffered a downturn, selling 121 cars – a drop of 34 per cent compared to thefirst quarter of 2011.

Ferrari blamed this on the economic situation and "the local government’s recent financial initiatives". A clampdown on tax fraud coupled with a hike in car taxes have curbed the traditional Italian enthusiasm for high performance sports cars.

Ferrari has expanded its retail network in the UK with prestige car dealers JCT600 and HR Owen opening new showrooms this year.

James Dallas is deputy editor of What Van?

Photograph: Getty Images

James Dallas is deputy editor of What Van?

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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: www.oldmutualwealth.co.uk/ products-and-investments/ pensions/pensions2015/