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.
ONS Pensions Error Under Estimates Power Of Private Pensions
For many in the financial world the Office for National Statistics (ONS) has long been one of the only departments of government with the full trust of the markets, but this trust has been dented with news of a major blunder. In their latest update on the Pensions market they reported that the average couple receive £2,115 a year from their private pensions, when in fact the figure is nearer £1...Read More
Is David Cameron right to attack public sector pensions?
Over the last couple of days we have seen some momentous decisions regarding public sector pensions which on the surface appear fairly innocuous but will have major consequences for those working in the public sector. Some doomsday scenarios suggest that by changing the inflation index from the retail price index to the consumer price index some public sector workers could see their pension paymen...Read More
Equity 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
Retirement saving hits high but savers expecting more
24/06/2015 Retirement saving in the UK has hit its highest ever level, with 56% of people now saving an adequate amount. A report from Scottish Widows showed that people are saving outside their pension on average £142 towards their retirement, which is an 8% increase from last year. The average proportion of earnings being save each month has now hit 12%, compared to only 6% in 2006, and...Read More
Brits save for retirement fun
Many Brits are saving now so that they can spend, spend, spend and enjoy their retirement in the future, new research from Abbey Savings shows. Some 44 per cent of those saving for their retirement were planning a trip around the world, while 25 per cent wanted to take up a new sport or activity and 1.8 million people said that they would like to try an extreme sport, like parachuting or bungee ju...Read More