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.
IMF highlights UK pension and healthcare systems as concerns
The International Monetary Fund (IMF) has this evening highlighted the UK pension and healthcare systems as potential concerns for the future. The IMF believes that these two issues need to be resolved as soon as possible to pave the way for a recovery in UK finances at a time when other countries appear to be in recovery mode, while the UK is consolidating at best.
It is no secret...
Should the formal retirement age be abolished?
A report by the Equality and Human Rights Commission has today prompted a very controversial and deep thinking argument regarding the UK retirement system. The commission has called on the government to abolish the formal retirement age and indeed introduce incentives for employers to retain those more mature workers and use their experience for as long as possible. But is this something of a doub...Read More
Pension funds benefit from stock market run
Even though UK stock markets are still well below their recent highs there was some good news for the pension fund market with confirmation of a significant increase in combined pension asset values over the last few weeks. However, there are still billions upon billions of pounds required to bring the vast majority of pension schemes up to full funding with some suggesting a further 30% rise in t...Read More
How did the public sector pension liability grow so large?
There are many different forecasts regarding the potential liability that UK taxpayers have towards public sector pension schemes but one thing appears certain, the liability is in the billions of pounds and will likely grow in the longer-term. We are now looking at a situation whereby local authority taxes and nationwide taxes are being used more and more to fund pension fund liabilities thereby...Read More
Pension freedoms may lead to influx of fraudsters
09/03/2015 The new pension freedoms allowing savers to access their pensions in full may lead to an influx of fraudsters trying to steal people’s savings. Experts within the pensions industry have warned savers that the changes in pension regulations could encourage criminal activity. Under the current pension regulations, people can only transfer their savings to another pension scheme....Read More