Latest: Pensions News

Gender directive could slash men’s annuity payouts

Gender directive could slash men’s annuity payouts

The EU Gender Directive, which came into force today, could see men losing up to £10,000 from their annuity payouts, according to research by PricewaterhouseCoopers. Under the new rules insurers are no longer allowed to take gender into account when setting annuity rates and premiums on insurance products. Men previously enjoyed higher annuity rates than […]

December 21, 2012 More
Government saving £1bn by cutting pensions tax relief

Government saving £1bn by cutting pensions tax relief

The Chancellor announced a cut in the tax relief it allows on people’s contributions to company or private pension schemes, in his Autumn Statement today. George Osborne said that the lifetime allowance, which is the maximum amount which can be saved in a pension fund and be eligible for tax relief, will be reduced from […]

December 5, 2012 More
Over 50s too optimistic over pensions

Over 50s too optimistic over pensions

A quarter of people aged between 50 and 64 years will need to save an extra £60,000 before they reach retirement age in order to receive the pension they expect. A new report from the National Association of Pension Funds (NAPF) suggests that people are over-optimistic about their retirement income and many are “sleepwalking into […]

November 30, 2012 More
Employers expected to opt for Nest pension scheme

Employers expected to opt for Nest pension scheme

Many small employers are expected to opt for the government’s National Employment Savings Trust (NEST) when they join the auto-enrolment scheme, according to Chris Atkin, director for Atkin & Co. The government launched automatic enrolment on 1 October 2012 for the largest companies, and smaller firms will be drawn into the scheme as it is […]

November 7, 2012 More
Peer suggests OAPs should work for their pension

Peer suggests OAPs should work for their pension

Lord Bichard, who sits on the Committee on Public Service and Demographic Change, has caused controversy by suggesting that older people are a “burden on the state”. He suggested that pensioners should have to do community work in order to receive their full state pension. Speaking to the committee he said: “Are there ways in […]

November 5, 2012 More
Younger retirees less focused on leaving an inheritance

Younger retirees less focused on leaving an inheritance

Traditionally parents have attached great importance to leaving an inheritance to their children, but attitudes are changing according to a survey by equity release and annuity provider Just Retirement. The survey, of homeowners aged over 55, was designed to gauge consumer attitudes towards housing equity withdrawal. Just Retirement found that younger retirees are more concerned […]

October 23, 2012 More
Scottish Widows highlights growing gender gap in pensions

Scottish Widows highlights growing gender gap in pensions

Women are saving £766 a year less than men for their retirement according to life, pensions and investment firm Scottish Widows. A new report by the firm suggests that the gender gap in pension savings has increased by 10 per cent in the last 12 months and is now at a record high level. Women […]

October 22, 2012 More
Auto-enrolment too expensive for micro-firms

Auto-enrolment too expensive for micro-firms

The Association of Consulting Actuaries (ACA) has called for the government to re-consider auto enrolment for the smallest firms, who might struggle with the costs of administering the scheme. From 1 October the largest companies have been required to automatically enrol workers in a pension scheme unless they chose to opt out. The scheme will […]

October 19, 2012 More
Pot-follows-member reform could hit retirement income

Pot-follows-member reform could hit retirement income

Proposals to allow workers to move their workplace pension to a new scheme each time they move employment have been criticised by pension and consumer groups. The Department for Work and Pensions is introducing the ‘pot follows member’ approach to avoid the potential problem of workers having several small pots when they reach retirement age, […]

October 16, 2012 More
Auto-enrolment could lead to pensions mis-selling

Auto-enrolment could lead to pensions mis-selling

The Pensions Institute has warned that the government’s recently launched auto-enrolment programme could lead to workers being enrolled into poor-value pension schemes. This month employers started to automatically enrol workers aged between 22 years and state pension age into a workplace pension, as long as they earn £8,105 or more. The scheme has started with […]

October 11, 2012 More
Annuity rates plummet due to money-printing

Annuity rates plummet due to money-printing

Annuity rates have fallen by 7 per cent in just three months according to MGM Advantage, the retirement income specialist. This means that a 65 year old man with pension savings of £50,000 would receive a retirement income of £2,579 a year from the annuity they purchased with their pension pot, compared with £2,778 in […]

Business owners unable to save for pensions

Business owners unable to save for pensions

Nearly half of business owners have no private pension savings, according to research by the Prudential. The insurer found that 46 per cent of one-person businesses have no private pension, representing 1.3 million people. Fifty-four per cent of this group said they were unable to afford to set money aside for a private pension, 18 […]

October 3, 2012 More
Government pension auto-enrolment scheme starts

Government pension auto-enrolment scheme starts

Firms with 120,000 employees or more will today start automatically enrolling their employees into a workplace pension scheme unless they chose to opt out. Both employers and workers will contribute towards the scheme, which will be rolled out to all firms, regardless of size, by February 2018. It aims to ensure that lower earners will […]

October 1, 2012 More
Nick Clegg announces pension-backed mortgage proposals

Nick Clegg announces pension-backed mortgage proposals

Deputy Prime Minister Nick Clegg has revealed plans for parents and grandparents to use their pension pot to help younger members of the family onto the housing ladder. The Liberal Democrats are suggesting that future lump sum pension payouts could be used to guarantee a mortgage. This would help younger people who are currently unable […]

September 24, 2012 More
Workers still unaware of pension auto-enrolment

Workers still unaware of pension auto-enrolment

From next month, employers with 120,000 or more workers will have to automatically enrol workers into a workplace pension scheme, but more than half of workers are unaware that this will happen. According to Scottish Widows’ Workplace Pensions Report, 52 per cent of workers remain unaware of the scheme, which will eventually be rolled out […]

September 10, 2012 More
Unions vote to accept public sector pension changes

Unions vote to accept public sector pension changes

Unions have agreed to proposed changes to the Local Government Pension Scheme (LGPS), ending a long-running dispute with the government over the reforms. Members of Unison and Unite, two of the UK’s largest unions, voted in support of the reforms, with 84 per cent of Unite members voting to accept the changes and 90 per […]

August 24, 2012 More
ABI calls for transparency over pension charges

ABI calls for transparency over pension charges

A ‘protocol’ should be given to members of company and private pension schemes, giving clear information on charges, the Association of British Insurers (ABI) says. The ABI’s call for pension charges to be made clearer comes prior to the introduction of automatic enrolment in autumn, when employers will be required to enrol workers in a […]

August 23, 2012 More
Military pension age to rise to 60

Military pension age to rise to 60

Members of the Armed Forces may have to wait until they are 60 to be able to claim their pensions under the government’s planned pension reforms. Military personnel are traditionally able to claim their pension at the age of 55, but those currently under the age of 45 could have to wait another five years. […]

August 1, 2012 More
Government to get tough on pension charges

Government to get tough on pension charges

Writing in The Telegraph today pensions minister Steve Webb warned that he would not hesitate to take action on pension charges. Mr Webb reminded the pension industry that the government has the power to cap pension charges and would use this power if it felt consumers needed protection. He is writing ahead of the introduction […]

July 23, 2012 More
Pot-follows-worker plan raises pension concerns

Pot-follows-worker plan raises pension concerns

As part of its preparations for the introduction of auto-enrolment in October, the government has outlined plans for pension pots to follow workers when they move jobs. Auto-enrolment will require employers to enrol their workers into a qualifying workplace pension scheme and this is expected to lead to an increase in the number of pension […]

July 18, 2012 More