UK’s pension system is still lagging behind: landmark freedoms have not gone far enough say critics October 22, 2015 Sweeping reforms to the UK pension system do not go far enough, according to an international report that says Britain fares badly compared to many peer countries. Despite recent changes, the UK's public and state pensions remain "almost entirely unfunded", say analysts from the Melbourne Mercer Global Pensions Index (MMGPI), while the basic state pension [...]
More than £15bn lies forgotten in pensions and savings in the UK, thanks to Britons forgetting their bank details October 21, 2015 Forgotten passwords and lost details have cost Britons more than £15bn in unclaimed bonds, pensions, insurance policies and lost lottery tickets. Figures from Beagle Street life insurance provider show that as of the end of September, an estimated £5bn was sitting in dormant bank accounts, along with £3bn-worth of pensions that have not been collected, [...]
Why pensioners are probably earning more than you are October 20, 2015 Pensioners are better off than ever before, earning more on average than people of working age, according to new research from the Institute for Fiscal Studies (IFS). IFS director Paul Johnson said last night that IFS research suggests that pensioners’ incomes will continue to rise for at least the next decade – but it is [...]
Why the UK pensions triple-lock is a costly economic – and political – mistake October 19, 2015 Politicians spend much of their time worrying about repeating the political mistakes of their predecessors. In recent weeks, Conservative MPs have mused over whether changes to tax credits could have the same impact on support for the government as Gordon Brown’s abolition of the 10p tax rate, or could even be their “poll tax”. Yet [...]
Pensions committee warns industry is at risk of next mis-selling scandal over new freedoms October 19, 2015 The work and pensions select committee is today publishing its report on pension freedom guidance and advice, in which it blasts reforms introduced in April as being “insufficient”. The report, the result of an inquiry, announced in July, into recent pension reforms, states that “freedom to choose” is not enough: “People must have the freedom to make a well-informed [...]
Why public sector pensions need a radical overhaul October 14, 2015 A fortnight ago, I delivered a call to arms to the Government, detailing the need for immediate action to address the parlous state of UK public pensions. The estimated total shortfall is a staggering £1.7 trillion, across funded and unfunded public sector schemes. This exceeds UK GDP. On the basis of a 2012 ONS study, [...]
Pension freedoms: Six months on, savers still held up by four-week wait to access lump sums October 13, 2015 Retirees hoping to make use of the new pensions freedoms are being held up for weeks by admin hurdles, research has found. Since April this year, anyone over the age of 55 has been able to take some – or even all – of their pension as a lump sum. The new rules wiped [...]
“Top-up” pension scheme to start tomorrow October 11, 2015 Applications for the new "top-up" pension state pension scheme will start tomorrow, which allows pensioners to boost their retirement income by up to £25 per week for a one-off payment. Existing pensioners and those who reach retirement age before 6 April 2015, who are entitled to the state pension are eligible for the scheme. Pensioners can [...]
Pension freedom? There’s more to do before savers are really trusted with their money October 8, 2015 Six months ago, George Osborne kicked off what looked like an enormous shake up of the pensions industry – new freedoms that would give those with defined contribution pensions the ability to take their entire pension as a lump sum, with the first 25 per cent free of tax and the usual rate of income [...]
The new pension freedoms are transforming asset management October 6, 2015 The pensions freedom and choice agenda, announced at Budget 2014 and implemented in April this year, took fund managers by as much surprise as insurers. Eighteen months on, what can we see happening in the asset management world, as investment houses digest the implications? The biggest change in the new agenda was the final [...]