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.
Will 2010 see major changes in the UK pension industry?
There is no doubt that the last few years have been a disaster for the UK pension industry with the value of personal pensions under pressure, final salary pension schemes reporting massive deficits and many of those taking retirement receiving significantly lower incomes than they had expected only a few years ago. All in all there needs to be a major change in the structure and make-up of the UK...Read More
New study reveals “comfort” pension threshold
20/05/2014 An industry report has revealed that those planning their finances for retirement should be aiming to receive an income of at least £15,000 a year. The figures show that 43% of retirees who earn between £15,000 and £20,000 felt financially secure. However, just 24% of those earning less than £15,000 after retirement felt financially secure, with many of this group struggling t...Read More
The Government recently entertained the concept of forcing companies to use the Consumer Prices Index (CPI) to up rate pension schemes as opposed to the Retail Price Index (RPI). The Government have, however, moved away from this position. Implementing this move would potentially have slowed growth of pension funds and therefore devalued funds. This did not stop the change being brought about...Read More
UK public companies boosted by potential pension funding change
Shares in BT, British Airways and ITV were fairly buoyant towards the end of last week amid news that the Pensions Regulator may be taking a softer stance on pension deficits. The three companies mentioned above have particularly large pension fund deficits, due in the main to a fall in the value of property and the UK stock market, which had led to fears of financial problems in the short to medi...Read More
Brits ‘worst in World at saving for Retirement’
Figures from a study administered by HSBC have revealed that British workers are the worst in the world at preparing for retirement through a pension scheme. While the average retirement period in the UK is expected to last for nineteen years, figures show that the average pension in the UK will last for just seven years. The problem however is not confined to the UK, with worldwide savings las...Read More