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.
Have you instigated a pension fund transfer recently?
As the UK pension fund industry gets set for major changes in the future the FSA (Financial Services Authority) has again questioned the quality of advice given to some pension fund members who transferred out of employee pension schemes. If you have recently transferred from an employee pension scheme into a private pension arrangement it may be worthwhile checking the terms of your transfer and...Read More
Expat pensioners lose court battle
The UK government is this evening breathing a sigh of relief after winning a European Court of Human Rights battle which could have resulted in a £500 million a year additional bill for the UK state pension. The case revolves around a number of expats who have moved overseas to places such as Australia and Canada and are currently only receiving the pension payable upon their retirement in the UK...Read More
What happens if your final salary pension scheme closes?
While 20 years ago a final salary pension scheme was very much the norm in the UK business arena times have changed and the outlook for the pensions industry is very very different. It has been reported today that one in four final salary pension schemes will close their doors during 2009 leaving many employees struggling to understand the implications and the potential loss of protection going fo...Read More
How do I get a Pension?
This is not a question enough young people are asking. A lack of awareness is a major contributing factor to the fact that so many people are ill-equipped for their retirement. People are typically ignoring or failing to realise the importance of making sure they have a pension plan in place from a young age, and as such are set to struggle when they reach retirement age.
How you get a...Read More
Watson Wyatt Forecasts Final Salary Scheme Demise
Pension experts at Watson Wyatt have stepped into the argument about final salary schemes and whether they are at all feasible. Using their experience in the market place and feedback from an array of customers they are forecasting wide ranging changes to the final salary scheme sector, with closures and conversion set to increase.
It is already known that about 6% of all final sal...