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.
Trust in the pensions industry is falling
12/03/2015 TD Direct Investing has found that 46% of people do not feel like they have had enough guidance to decide what to do with their pensions following the upcoming pension freedoms. The survey found that 46% of people do not believe that they have been given enough guidance to make the best decision regarding their pensions, and 48% of people say they no longer have trust in the indu...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
Work longer and save more for your pension
Amid a growing debate as to whether the UK economy is back in recovery mode or still sluggish, many people have missed the growing concern regarding pension funds. A number of actuaries and pension advisers have come out to confirm that future pension arrangements will require a significant increase in funding with many people forced to work beyond their traditional retirement age.
Why is the UK pension sector in such a mess?
The revelation that total liabilities for UK pension schemes of the defined benefit variety have now topped £1 trillion and seen the actual deficit increase to nearly £200 billion is causing serious concern within government corridors. Many people are now wondering how the UK pension system is in such a mess and how over the last 10 years, no real assistance has been offered.
Brown takes responsibility for pensions decision
Gordon Brown has accepted full responsibility for changes to pension tax rules made ten years ago, insisting they were the "right decision".It emerged last week that the chancellor had been warned that ending tax relief on share dividends could create a £75 billion pensions black hole.Inland Revenue documents obtained by the Times under the Freedom of Information Act and a Financial Institutions...Read More