George Osborne scraps pension reforms package including tax relief plans March 5, 2016 Chancellor George Osborne will scrap plans to introduce a package of reforms on pensions including cutting tax relief for higher earners. It was feared that the radical reforms, which would have made pension pot withdrawals tax-free but eliminated relief on contributions, could have triggered a run on savings and backlash from high-earning voters. A product of an [...]
UK pensions: Auto-enrolment gives savers a false sense of security, and mismatch between pension freedoms age and state pension age causes further confusion March 4, 2016 Those who think that paying the minimum into their pension pot under auto-enrolment is going to fund them a comfortable retirement are in for a nasty shock, as pension experts warn the savings contribution system is lulling people into a false sense of security. Portal Financial also today warned that some people could be confused by the [...]
UK pensions and Waspi campaign: Why state pension age is going up and what we need to do to bring it down, be it a more productive workforce, immigration, building more houses or having more children March 4, 2016 The current Waspi campaign by women affected by changes to state pension age has brought the issue back into focus again. And it will really ignite in 2018 when male state pension age starts to increase above its current level of 65. It’s a common misconception that the national insurance we and our employers pay [...]
Budget 2016: George Osborne’s plan to create pension Isas could create “Northern Rock-style run on the pension system”, Hargreaves Lansdown March 4, 2016 George Osborne's plans to reform pension taxation by creating so-called pension Isas could cause a "Northern Rock-style run on the pension system" – and may end up costing investors billions of pounds. The plans are expected to be revealed as part of the chancellor's Budget on 16 March. It is thought they will see the current regime scrapped in [...]
Pension tax relief reform: A fairer flat rate system will drive up saving rates and prepare people for rising life expectancy March 4, 2016 I read a startling fact recently. The first person who is going to live to 150 years old is already alive today. Think about that for a moment. That is potentially 75-plus years in retirement. If that person is in this country, either the state is going to have to pick up the bill for [...]
Pensions: Secretary of state for work and pensions Iain Duncan Smith defends independent review into state pension age March 2, 2016 Secretary of state for work and pensions Iain Duncan Smith has defended the independent review that his department has launched into state pension age. Responding to an urgent question from the shadow secretary of state for work and pensions Owen Smith, he added that changes to the state pension age could need to be taken to [...]
UK pensions: As state pension age is reviewed, with experts warning that people may have to work until their 70s, study reveals that 61 per cent of over-45s already envy older generations March 2, 2016 Everyone is jealous of retirees right now – even those who are relatively close to becoming one themselves. Nearly two-thirds (61 per cent) of over-45s currently saving into a pension pot envy the financial security and lifestyle the generations above them seem to have, acutely aware that they'll probably never have it so good, research released today by [...]
UK pensions: Funding of defined benefit (DB) schemes is getting a bit better, with FTSE 100 companies covering more and more of their liabilities March 1, 2016 Funding for defined benefit (DB) pension schemes is improving, with blue chip companies now covering most of their liabilities, figures released today show. According to the research by JLT Employee Benefits, the total deficit across all UK private sector DB pension schemes stood at £209bn at 29 February 2016, which represents a funding level of 85 [...]
Department for Work and Pensions appoints John Cridland to review state pension age and assess what effects longevity might have on government’s ability to provide for future generations March 1, 2016 The Department for Work and Pensions has today announced that John Cridland, former director general of the Confederation of British Industry (CBI), will be leading a review into state pension age. The review, which is the first for the UK, will evaluate what effects aspects like changing life expectancy will have on the Department's ability to provide [...]
From pensions taxes to the EU referendum to the Elizabeth Line: Here’s what got you reading this week February 27, 2016 1. A pensions tax bombshell Former pensions minister Steve Webb wrote on Sunday that George Osborne is preparing to drop a "tax bombshell" on pensions savers by scrapping the tax-free lump sum. Find out what the chancellor may have planned here. 2. The EU referendum There was no escaping from it: wherever you looked, another politician [...]