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.
UK government considers abolishing retirement age
The UK government is stuck between a rock and a hard place as it battles against the ever-changing population breakdown of the UK. For the first time ever there are now more pensioners than children in the UK due to a longer lifespan for the UK population and a lower than expected birth rate. When you also bear in mind that pension funds have suffered dramatic falls over the last couple of years t...Read More
Blue-chip pension schemes receive record £17.5 billion contribution
The UK's top 100 blue-chip companies last year pumped a record £17.5 billion into their struggling pension schemes which allowed the deficit to be almost halved, currently standing at around £51 billion when taking into account income and investment gains. Records indicate that Royal Dutch Shell injected around £3.3 billion into its own flagging scheme with the likes of Lloyds bank, Royal Bank...Read More
Is an ageing population the major threat to the UK economy?
Over the last few days the headlines regarding the UK economy have been fairly negative with an expected impact from the problems within the euro zone. However, more and more analysts and economic advisers are suggesting that the ever ageing UK population is the one major threat to the prosperity of the country in the medium to longer term. So how can this be? The problem with an ageing populat...Read More
When would you like to retire?
The subject of the UK retirement age has been in the headlines this week with the UK government loosening the regulations regarding statutory retirement thereby allowing people in the UK to work beyond their 65th birthday. But how long would you like to work before you are able to retire? While the headlines would appear to be in favour of employees in the UK the truth is that the UK government...Read More
Government reveals public sector pension overspend
Public sector pensions overpayments since 1978 exceed £120 million, the government has admitted.A minister has also said that claiming back the money would not be possible for cost reasons.Payments to workers such as NHS doctors and civil servants are included in the total.Some pensions are to be reduced from the start of the new financial year next April as a result of the finding.Liam Byrne MP,...Read More