Hold your horses: The government’s plans for to let pensioners sell their annuities in a new secondary market are coming in for criticism January 27, 2016 Pensioners who bought an annuity will be given the freedom to sell it on from next year, under new government plans. But criticism is piling up, and it seems the new secondary marketplace will be a good idea for almost no-one – except the brokers who trade them. The details are still being ironed out, but [...]
Number of people worried they’ll never be able to afford to retire increases January 27, 2016 We talk a lot about the amount of pressure the younger generation are under – but those nearing retirement age have it just as hard, it turns out. A new report suggests that the number of people who said they're worried they may never be able to completely retire has risen to 12 per cent of [...]
Low interest rates more of a challenge to defined benefit pension schemes across the EU than people living longer, says pensions watchdog January 26, 2016 Postponed interest rate rises will be the real cause of problems for those providing defined benefit (DB) pensions, not people living longer. According to results released today from a stress test on occupational pensions by the European Insurance and Occupational Pensions Authority (EIOPA), DB schemes showed greater sensitivity to sudden falls in interest rates and rises in inflation [...]
UK pensions: Flat rate pensions tax relief would be “fairer” and encourage people to save more for their retirement, but pensions ISA would be a bad idea, says industry body January 24, 2016 A single rate of pensions tax relief would make the system simpler, fairer and more sustainable, according to a statement made by the Association of British Insurers (ABI) over the weekend. The ABI, which has been calling for reform to higher rate pension tax relief since 2013, has urged government to consider introducing what it [...]
UK pensions: Should you switch from a gold-plated defined benefit plan into a DC scheme? There’s a growing trend as retirees hope to take more cash out of their pots January 19, 2016 Pension savers now have more options at retirement – whether that’s taking a lump sum, buying an annuity, or dipping into it regularly. The flexibility now offered to people on regular defined contribution schemes seems attractive to people on “gold plated” defined benefit pensions, many of whom have considered switching from their secure scheme to the [...]
UK pensions: Charges for accessing pensions early to be capped as many who wish to use the pension freedoms face a fee for doing so January 19, 2016 Chancellor George Osborne has today announced that a limit on the amount that people can be charged for accessing their pension pot early will soon be introduced. Speaking in the House of Commons, Osborne said that nearly 700,000 of those who were eligible to use the pension freedoms rules, which came into effect in April last year, to gain access [...]
UK pensions: More than half would favour a move to a flat rate pensions tax relief scheme, but the pensions industry might struggle to adapt, warns pensions company January 19, 2016 More than half of pensions savers are in favour of a shift to flat rate pensions tax relief. A survey released today by pensions company Aegon discovered that 60 per cent of customers would favour a move to a flat rate of 33 per cent for pensions tax relief, which is currently applied at the same rate people [...]
FSCS is planning to levy £363m in the next financial year January 19, 2016 The Financial Services Compensation Scheme (FSCS) is expecting to levy £363m from the City in the next financial year, warning of a rise in pension claims. The final figure for the levy will be announced in April, and the plan is currently under consultation. However, the FSCS has indicated that it expects pensions savers – [...]
There’s nothing fair about burdening future generations with unfunded spending on pensioners January 19, 2016 Words like “fairness” and “justice” are regularly thrown around with little thought to what they mean. Strangely, though, the politicians who use them seem to be unwilling to debate the pressing issue of intergenerational justice relating to the unsustainable government promises being made to future generations. Nonsense, you might say. We often hear ministers and [...]
UK pensions: State pensions statements to go digital potentially as early as April, as service currently in public beta testing, says pensions minister Baroness Ros Altmann January 18, 2016 Pensions minister Baroness Ros Altmann has today said that statements for the state pension could potentially be digital from April onwards. Speaking in front of the Work and Pensions Select Committee regarding its inquiry into understanding the new state pension, Altmann revealed that the new digital system was currently in public beta testing and the Department for Work [...]