Call for government to double exemption limit on employer pension advice 27 April 2018
According to the workplace pensions report published by the CBI in partnership with Aegon, 56% of employers surveyed believe that the government should extend the tax exemption for employer-arranged pension advice to more than £500.
Aegon is calling for the limit on income tax and national insurance (NI) relief on employer-arranged pension advice to be extended from £500 to £1,000.
This follows the findings of the Engaging with saving, the workplace pensions report the CBI published in partnership with Aegon in March. The report revealed that more than half of employers believed that the government should extend the tax exemption for employer-provided pensions advice to more than £500. The employer-arranged pension advice exemption is the amount an employer can spend on pension advice per employee in a year, without the individual incurring tax as ‘benefit in kind’. It can be used to provide workplace advice on pensions, and on general financial and tax issues relating to pensions, to help employees make informed decisions on saving for retirement.
Reportedly the cost of advice varies depending on the situation but it can be anything between £75 and £350 an hour, with the average cost of advice in the UK being around £150 an hour.
Read the full press release from Aegon
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Pensions Minister backs mid-life MOT 2 May 2018
With a rising state pension age and many more people living to 100, there is a greater need to plan and prepare for your future life than ever before.
50 will increasingly become the halfway point and an important time to take stock, reflect and plan for the decades ahead. It’s important to think about how we will fund our future years, when and how we will work and retire and how we will spend our time. Following John Cridland’s independent review on state pension age that was published last year were several recommendations for government to consider to help people to save later In life. One of these suggestions was the idea of a mid-life MOT. This concept is a point in people’s lives, roughly in their 50s, where they would be given help with the lifestyle choices which determine their financial position. Cridland recommended that this would be in the shape of a web-based tool that connects to people through the pension dashboard. It would provide financial guidance and lifestyle diagnostic help to address the fundamental questions people face. This lifestyle and employment help would be in the shape of careers guidance from either employers or the government’s National Careers Service. Professional adviser reports that there has been a mixed response, but Guy Opperman, pensions and financial inclusion minster recently spoke at the Association of British Insurers (ABI) event on 26 April and said the mid-life MOT was an idea he was "championing".
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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