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.
FTSE 100 companies request change in pension regulations
Tesco has come forward to ask the UK government to change the laws on pension payments and allow companies to reduce payouts where applicable. The ongoing demise of the UK economy and the UK stock market has placed significant pressure on the UK pension industry and many major companies are suffering. To give you an example of the current situation, Royal Bank of Scotland is currently valued at ju...Read More
Regular job movers can keep pension plans
24/10/2014 People who change jobs regularly will now no longer have to cash in or move their workplace pension, under new government plans. Some 20,000 employees a year, who move jobs after being in a company for less than 2 years, are usually given a “short service refund” of their pension contributions. This can be optional, but companies have the power to insist this option is taken. Th...Read More
How much do you need to retire?
A report by MGM Advantage claims that the average couple in the UK will require £600,000 to be able to enjoy 20 years of retirement. While there is a large variation in the cost between the South and the North of England, with London couples said to require £194,602 more than their northern counterparts, it will come as a shock to many in the UK. The report also suggests that the cost of livi...Read More
Grandparent carers set to receive credit from the UK government
With UK grandparents providing childcare across the UK to tune of £3.9 billion a year many people believe that recognition of this vital element of UK society was long overdue. As a consequence, Alistair Darling has announced that those caring for children under the age of 12 for more than 20 hours a week will receive tax credits towards a national pension.
While the figure of £3....
Labour spin machine again targets Sir Fred Goodwin
In a blatant attempt to offset any potential negative press comment regarding the reduction in UK base rates and the introduction of quantitative easing, a Labour MP has today tabled a motion to introduce a new tax charge. John Mann has suggested that for those with pensions over £700,000 a year there should be new tax charge of 90% introduced which would reduce the amount received to around £70...Read More