Government reviews pension enrolment guidelines
The UK government is believed to be reconsidering the level at which employees in the UK would be automatically enrolled into a pension scheme as well as a potential exemption for small companies. The original changes, which would see hundreds of thousands of employees in the UK automatically enrolled into pension schemes, are set to come into play in 2012 although we may see some changes to the original guidelines before then.
The proposed changes could see the threshold for joining such schemes increase from £5,000 per annum to anywhere from £10,000 per annum. The main concern of the government seems to be the possibility that a very small pension fund would in reality simply replace means tested benefits and be of little assistance to low-income workers in the UK. Whether this is the case remains to be seen but the authorities are certainly reconsidering their initial recommendations.
A number of authorities in the UK representing small businesses have been lobbying the government for some time for exemptions for those with fewer than five employees where potentially the cost of setting up the arrangements becomes "non-cost-effective". We are likely to see major changes between now and the proposed introduction date of 2012 with a number of different authorities and bodies around the UK lobbying the government for a number of changes.
Mind the gender pension gap
Women not only suffer from the pay gap, but are also subject to the pension gap, new research from Scottish Widows has shown.More than one in three women of working age (35 per cent) do not have a pension scheme, compared to 22 per cent of men, and employers also contribute less to female staff's pensions (as a percentage of salary) than they do to men's, the survey revealed. Over half (54 per cen...Read More
Life expectancy 'poses pension problems'
The increasing life expectancy of UK citizens is a major challenge for the pension industry in the future, it has been claimed.Life insurance and pensions organisation, AEGON Group, has warned that the UK pension pot is already facing significant pressure because of the increasing longevity of Britons and this situation is only going to get worse in the future.Rachel Vahey, head of pensions develo...Read More
Has the UK government sounded the death knell of final salary pension schemes?
The future of final salary pension schemes in the UK is today under threat amid confirmation that the UK government will significantly reduce the amount of pension funding allowable under tax relief regulations. While this will hit the higher echelons of the UK business arena many believe that it is effectively a sounding bell for the last rites of final salary pension schemes in the private secto...Read More
The great government pension scandal
It has been revealed that upwards of 500,000 pensioners in the UK have been penalised by government assumptions on their income. When calculating a particular person's pension credit, all assets and all income has to be taken into account which on the surface appears fair enough. However, it is the way in which the government calculates interest on savings which is causing serious concern in the m...Read More
Pension Reform is unclear, say MP’s
A group of cross-party MP’s have expressed their concern that the Government has not done enough to explain to the public how the forthcoming revamp of the state pension will affect them. It is thought that around 40 million people will be affected by the changes, and although members of the Work and Pensions Committee say they support the scheme, they have said that the Government must do m...Read More