Will the UK government reinvigorate the pension fund industry?
There is no doubt that the UK government has a number of specific ideas and tasks in mind for the UK pension fund industry. We have seen George Osborne and David Cameron attempt to tackle the monumental problem of public sector final salary pension schemes as well as various taxation changes with regards to the purchase of annuities and the ability to transfer assets upon death. Will this reinvigorate the UK pension fund industry?
The very fact that the UK government is looking longer term, and willing to give up short-term benefits such as taxes, is a sign of the times. The more any individual has at their disposal in the future, to support their life in retirement, the less pressure this will place upon the UK benefit system. This will allow the benefit system to be targeted towards the more needy of society although whether we will see any significant increase in the state pension in the long term remains to be seen.
Many people believe that Gordon Brown began the demise of the UK pension fund industry by introducing a flurry of taxes on pension fund assets, which had a massive negative cumulative impact upon the sector. Whether David Cameron and George Osborne can reverse this trend remains to be seen but many hope that improvements will follow in the future.
Share this..
Related stories
How did the pension fund actuaries get it all so wrong?
The pension fund industry is a very complex monster and one which is proving very difficult to forecast in the short, medium and longer term. Only a few years ago it was revealed that government actuaries had in fact miscalculated, or wrongly estimated, the average lifespan of the UK population. While there was only a relatively small error between the actual figure and the estimates from some tim...
Read MoreUK plc set to cut pension contributions
In a move which could have long-term consequences for a growing number of workers in the UK it has been revealed that Aviva , the U.K.'s second largest insurer, is set to scrap free pensions for defined contribution members. Aviva is the latest in a long line of companies looking to reduce their pension payments for defined benefit schemes with employees having to pay 1% of their salary from July...
Read MoreConservative party refuses to bail out Pension Protection Fund
A Conservative government would not underpin the financial liabilities of the Pension Protection Fund (PPF) according to the shadow pensions minister Nigel Waterson. While this headline will make uncomfortable reading for many in the UK who are concerned about their employer pension scheme, there is a reason why the authorities would not automatically underpin compensation payments funded by the P...
Read MoreEquity release 'might be on the decline'
Decreasing numbers of homeowners are to use equity release to fund their retirements, thanks to declining house prices.According to insurer MetLife, around one third of people feel "less confident" about this form of borrowing - a trend which could signal a decline in its popularity.The credit crunch has caused a constriction on mortgage lending, which means that home loans deal numbers are runnin...
Read More