Latest: Pensions News

ABI says Labour’s pension warning is misleading

ABI says Labour’s pension warning is misleading

A new report by the Labour Party on pensions has been criticised by the Association of British Insurers (ABI) as badly timed and misleading. The report, by shadow work and pensions secretary Liam Byrne, supports earlier comments by Ed Miliband that pension fees and charges could erode half of a retiree’s pension fund. The Labour […]

July 16, 2012 More
Fund managers’ charges eroding some pensions

Fund managers’ charges eroding some pensions

The charges levied by some fund managers could be eroding defined contribution pension schemes by up to 17 per cent, according to a report by the National Audit Office (NAO). The watchdog is calling for fund managers to be more accountable for how they manage the schemes, following a study into the regulation of defined […]

July 11, 2012 More
A quarter of over-50s will delay retirement

A quarter of over-50s will delay retirement

Saga, which provides finance products exclusively for the over 50s, claims that more than a quarter of people in this age group will work past the current state pension age of 65. Based on 427,000 retirement dates given by people using its annuity service, 27 per cent of over 50s will work beyond the age […]

June 19, 2012 More
Number of pensioners in the workplace doubles

Number of pensioners in the workplace doubles

The number of people continuing to work after reaching retirement age has increased by 85 percent, from 753,000 in 1993 to 1.4 million in 2011, according to the Office for National Statistics (ONS). The ONS said this was due to a number of factors, including improved health and wellbeing for older people, with many of […]

June 13, 2012 More
Retirement income lowest for five years

Retirement income lowest for five years

The gap between the value of pensions received by men and women has narrowed, according to a survey by the Prudential. While this looks like good news on the surface, women are only catching up with men because the average male annual pension has fallen in value, rather than because women’s retirement income has increased. […]

June 8, 2012 More
Agreement reached over council pensions

Agreement reached over council pensions

After months of talks, employers and trade unions have agreed to introduce career-average pension schemes for all 1.6 million local authority employees. The proposed new scheme, known as LGPS 2014, would start in 2014 as the name suggests. It would require higher paid staff to contribute significantly more to their pension than they do at […]

June 1, 2012 More
More people failing to save for retirement

More people failing to save for retirement

The proportion of people with no pension savings has grown from 20 per cent to 22 per cent over the past year, according to Scottish Widows’ latest survey. The pension provider surveyed 5,200 adults in the UK, aged 30 or over, and earning at least £10,000 a year, for its annual review of pensions. Ian […]

May 21, 2012 More
Queen’s Speech outlines pension changes

Queen’s Speech outlines pension changes

The Queen’s Speech has outlined plans to introduce a flat-rate state pension in England, Scotland and Wales and to automatically increase the pension age in line with longevity. A new flat-rate of £140 will replace the current full state pension, which stands at £107.45 a week, but can increase to £137.35 with pension credit. The […]

May 9, 2012 More
Further increase in private-sector pension deficit

Further increase in private-sector pension deficit

New reports suggest that the deficit of private-sector, final-salary, pension schemes has increased again, with industry experts suggesting that this type of pension may have disappeared by 2020. The latest figures from the Pension Protection Fund (PPF), which provides compensation to members of eligible defined benefit pension schemes if an employer becomes insolvent, show that […]

May 8, 2012 More
Over-50s face 11-year retirement delay

Over-50s face 11-year retirement delay

People over the age of 50 will need to work for a further 11 years after they reach state pension age according to a new report. The Pensions Policy Institute claims that those who are unable to carry on working will struggle to maintain their standard of living. The report suggests that a single person […]

April 25, 2012 More
Public sector pension strike planned for May

Public sector pension strike planned for May

A further strike against the government’s proposals to reform public sector pensions is expected next month. The dispute has continued for a year now, with a million public sector workers from a number of unions taking part in a general strike in November. Members of The Public and Commercial Services union (PCS) and health union […]

April 18, 2012 More
Firms mislead consumers with pension projections

Firms mislead consumers with pension projections

The Financial Services Authority (FSA) is calling for pension and insurance providers to reduce the estimates of returns used when marketing their products. The regulator warns that firms are using over-generous forecasts which could be misleading for consumers. It wants them to reduce the estimates of returns on investment products by at least 0.5 percent, […]

April 12, 2012 More
Government may tax state pension at source

Government may tax state pension at source

As part of its plans to simplify the tax system the Government may start taxing State Pensions before they are paid out. Pensioners whose taxable income, including their State Pension, exceeds their tax-free personal allowance, still have to pay income tax, although it is estimated that only 40 per cent of pensioners realise that their […]

April 10, 2012 More
One in six retirees relying on state pension

One in six retirees relying on state pension

New research by Prudential shows that one in six people retiring this year will rely solely on their state pension because they have no workplace pension to supplement their income. The Prudential’s ‘Class of 2012’ survey into the retirement plans of nearly 10,000 people highlighted that women are more than twice as likely as men […]

April 4, 2012 More
Auto-enrolment aligned with tax and NI

Auto-enrolment aligned with tax and NI

The government revealed today that automatic enrolment rates for the tax year to April 2013 will be aligned with tax and National Insurance thresholds to make implementation simple for firms. Auto-enrolment is being phased in from 1 October, starting with the largest firms, and should be in full effect by the middle of 2017. It […]

March 27, 2012 More
Budget brings bad news for pensioners

Budget brings bad news for pensioners

Changes announced in today’s budget mean that four million pensioners will be worse off. The budget included controversial proposals to lower the income tax allowance for people over 65 to £9,205 from April. This will bring pensioners in line with the general population. The over 65s currently benefit from a more generous tax-free allowance of […]

March 21, 2012 More
Tesco raises pension age to 67

Tesco raises pension age to 67

Supermarket retailer Tesco has increased its pension age by two years to 67 for the 170,000 employees who contribute to the company’s scheme. Tesco employees will still be able to retire from the age of 55 at a reduced pension rate, but they will only receive a full pension if they work until 67. The […]

March 14, 2012 More
Strikes threatened as public sector pension talks conclude

Strikes threatened as public sector pension talks conclude

Talks over public sector pensions have now ended with the government producing a final set of proposals. While the Treasury said the talks were constructive, unions claim that ‘serious matters’ have been left unresolved, leading to the threat of further industrial action. The proposed changes to health, education and civil service pensions are designed to […]

March 9, 2012 More
Pensioners hammered by QE and rising living costs

Pensioners hammered by QE and rising living costs

The value of final salary pension schemes has been slashed by £90 billion due to the government’s latest round of quantitative easing (QE), the National Association of Pension Funds (NAPF) warns, while pensioners’ incomes have also been hit by soaring living costs. A new study by LV= suggest that pensioners’ day-to-day living costs have increased […]

March 8, 2012 More
Second salvo of QE knocks £90bn off pensions funds

Second salvo of QE knocks £90bn off pensions funds

Falling gilt yields have pushed final salary pension funds £90bn deeper into the red since the second wave of quantitative easing (QE) started last October, pension experts said today. The National Association of Pension Funds (NAPF) said the Bank of England’s printing of £125bn within the past six months had hit pension funds harder than […]