Latest: Pensions News

Women disadvantaged by auto-enrolment changes

Women disadvantaged by auto-enrolment changes

Government proposals to increase the auto-enrolment threshold to £10,000 could put 1.8 million women at risk of missing out on a pension, the TUC has warned. Under the auto-enrolment scheme, which will be phased in from October, private sector employers will automatically enrol workers between the age of 22 years and the state pension age, [...]

February 8, 2012 | 0 Comments More
Unilever trustees back pension changes

Unilever trustees back pension changes

Consumer goods manufacturer Unilever has been given the backing of its trustee board for proposed changes to its pension scheme. The company’s employees are currently involved in strikes against the proposal to close its final salary pension scheme. In a statement the trustees said: “Whilst the trustee board does not welcome the company’s decision to [...]

January 20, 2012 | 0 Comments More
Pensions hit by low annuity rates

Pensions hit by low annuity rates

People who retire this year will be £3,000 worse off than those who retired four years ago because factors such as the credit crunch, the recession and the eurozone crisis have pushed down annuity rates to a record low. Annuity rates fell by eight per cent in 2011, which was the fourth consecutive year of [...]

January 11, 2012 | 0 Comments More
Public sector pension reforms ineffective

Public sector pension reforms ineffective

An independent pensions consultant claims that the government’s proposed reforms to public sector pensions will result in no cost savings whatsoever. John Ralfe says that the savings which will be made by increasing the public sector pension age to 67 will be cancelled out by the faster build up of pensions in the new schemes. [...]

January 5, 2012 | 0 Comments More
ACA warns of private-sector pensions collapse

ACA warns of private-sector pensions collapse

The private pension sector has suffered a ‘seismic collapse’ according to a survey by the Association of Consulting Actuaries (ACA). The ACA revealed today that nine out of 10 private sector defined benefit schemes, which promise a pre-determined monthly benefit on retirement, have been closed to new entrants and four out of 10 are closed [...]

January 3, 2012 | 0 Comments More
Quarter of final-salary pension schemes closed

Quarter of final-salary pension schemes closed

Nearly a quarter (24 per cent) of private-sector final-salary pension schemes were closed in 2011, according to the National Association of Pension Funds (NAPF). In comparison, just 3 per cent of final-salary pension schemes closed in 2008, while the proportion increased to 17 per cent in 2010. It is estimated that the closure of this [...]

December 16, 2011 | 0 Comments More
Short-service pension refunds to be banned

Short-service pension refunds to be banned

Employees who have been with a company for less than two years will no longer be eligible for a refund of the money they have paid into a defined-contribution pension scheme, under proposed reforms. The change, which is designed to stop employees leaving a firm without a pension, has been welcomed by the National Association [...]

Private sector pensions hit £222 billion deficit

Private sector pensions hit £222 billion deficit

Private sector final-salary pension deficits have increased collectively by £63.5 billion, from £158.6 billion at the end of October to £222.1 billion at the end of November. The figures, published by the Pension Protection Fund (PPF), reflect the increasing cost of paying for pensions which outstripped a 0.7 per cent month-on-month increase in the value [...]

December 13, 2011 | 0 Comments More
IFA calls for earlier annuity planning

IFA calls for earlier annuity planning

Putting off selecting an annuity can reduce the return on pensions savings according to Chatfield Private Client, a firm of Independent Financial Advisors. The firm is calling for people to take annuities into account at an early stage of the process of taking out a pension. Director at the firm Jason Ashman said: “What we [...]

December 12, 2011 | 0 Comments More
Government’s NHS pensions offer angers unions

Government’s NHS pensions offer angers unions

The government has announced changes to its pensions offer for NHS staff, which it claims are an improvement designed to protect low-paid employees, but which unions claim is a tax on middle-earners. Last week up to two million public sector workers went on strike over the government’s plan to increase the amount they will have [...]

December 8, 2011 | 0 Comments More
£80 billion pension deficit revealed

£80 billion pension deficit revealed

UK pension schemes were hit by a fall in both corporate bond yields and stock markets in November, with their funding deficit growing by a third to £80 billion. According to a report by consultancy firm Mercer, the deficit has reached its highest level this year, rising from a deficit of 60 billion pounds at [...]

December 5, 2011 | 0 Comments More
Courts rule government’s pension switch lawful

Courts rule government’s pension switch lawful

The High Court has decided that the government’s decision to use the Consumer Prices Index (CPI) to inflation-proof public sector pensions, rather than the traditionally-used Retail Prices Index (RPI), was lawful. The legal challenge to the change, which came into force in April, was launched by Trade unions who claimed that the change was made [...]

December 2, 2011 | 0 Comments More
Linking pensions to CPI costly for workers

Linking pensions to CPI costly for workers

Last year’s decision to tie public sector pensions to the consumer prices index (CPI) rather than the retail prices index (RPI) will result in pay-outs being reduced by over 17 per cent over 15 years, according to the TUC. In 2010 the government decided that pensions would rise in line with the CPI, which increases [...]

December 1, 2011 | 0 Comments More
Chancellor announces early increase in pension age

Chancellor announces early increase in pension age

In today’s Autumn Statement, or pre-Budget report as it used to be called, the Chancellor announced an earlier than expected increase in the pension age to 67. The previous Labour government had planned to increase the state pension age to 67 between 2034 and 2036, followed by a further increase to 68 between 2044 and [...]

November 29, 2011 | 0 Comments More
Pension auto-enrolment good move for workers

Pension auto-enrolment good move for workers

It would be a mistake to opt out of an employer’s pension scheme when auto-enrolment is introduced, according to Tom McPhail, head of pensions research at Hargreaves Lansdown. Auto-enrolment is being introduced from October 2012, when workers will be automatically enrolled into a qualifying pension scheme run by their employer. Auto-enrolment is being introduced by [...]

November 28, 2011 | 0 Comments More
Self-employed failing to plan for retirement

Self-employed failing to plan for retirement

In My Prime, a consultancy specialising in older workers, today warned that many self-employed people in the UK are failing to put enough money aside for their retirement. Small business owners could once rely on using the asset value of their business to fund their retirement, but in the current economic climate this may be [...]

November 25, 2011 | 0 Comments More
Over 45s with kids unprepared for retirement

Over 45s with kids unprepared for retirement

People aged between 45 and 64 whose children are still living at home are much less likely to have made financial plans for their retirement than those in households with no children, according to new research. A study by Standard Life revealed that 49 per cent of this age group, with two or more children [...]

November 24, 2011 | 0 Comments More
Many over-55s could claim enhanced pension payouts

Many over-55s could claim enhanced pension payouts

Many people approaching retirement age don’t realise they could receive higher pension income if they have ongoing health issues, or if their lifestyle could potentially reduce life expectancy. The risk that over-55s could be missing out on retirement funds was highlighted in a study by MGM Advantage. Seventy-two percent of this age group could be [...]

November 23, 2011 | 1 Comment More
UK savers gloomy about retirement prospects

UK savers gloomy about retirement prospects

New figures from financial research company Defaqto reveal that UK savers are pessimistic about their pensions and many are failing to make adequate provision for their retirement. Dafaqto reports that the proportion of savers who fear that their needs won’t be adequately met when they retire has grown 6 per cent to 44 per cent. [...]

November 16, 2011 | 0 Comments More
FDA joins public sector pensions strike

FDA joins public sector pensions strike

Support for a planned public sector strike on 30 November is increasing, with 81 per cent of FDA union members who took part in a ballot, voting in favour of industrial action. The FDA union represents senior managers and professionals in the public sector including government policy advisors, economists, solicitors, and members of the NHS. [...]

November 15, 2011 | 0 Comments More