dashboards. The dashboards should be non-commercial and protect sensitive consumer data. The PLSA’s Retirement Living Standards should be included to give savers an insight into the lifestyles they can expect to afford in retirement. • Point number three addresses the requirement for pension schemes to be managed properly. This involves ensuring that they are run effectively and to provide The Pensions Regulator (TPR) with greater powers to intercept and impose fines on any reckless behaviour that risks money invested by savers. • The fourth and final point relates to pensions and scale. Private sector defined benefit schemes are currently in deficit, despite receiving £400 billion in contributions over a ten-year period. The creation of Superfunds would help to protect member benefits.
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Former Pensions Minister urges new government to change the way pensions are accessed 12 November 2019 Baroness Ros Altmann, former Pensions Minister has advised that the new government, which will be established after the general election, need to make serious changes to current legislation surrounding how the state pension is accessed. Baroness Altmann states that individuals who are in ill-health should be allowed to receive their state pension early as consideration needs to be placed on life expectancy and health in certain scenarios, and not just based on general society. Unfortunately, there will be people who will not live until state pension age and this needs to be factored into the content of upcoming pension manifestos. In certain private pensions, there is the option to start making withdrawals from schemes early but there is currently no reflection of this on the state pension, even though life expectancy varies considerably across the country. It is a sad fact that, at present, the state pension age will continue to increase with no consideration for individual circumstances. Baroness Altmann also explores the issue of helping the most vulnerable pensioners by ensuring that pension credits are increased in line with uplifts to the state pension. The state pension is currently protected by the triple lock, which means that it increases by the highest of 2.5%, price inflation or earnings growth. Pension Credit, the old graduated state pension, State Earnings Related Pension (SERPS) and second state pension are only protected by CPI price inflation. Baroness Altmann thinks the triple lock should be extended to cover these other pensions to ensure consistency and to make things fair. The article was published in the Financial Advisor and also discusses how women in the 1950s were not ‘adequately informed’ of the amendments that were going to affect state pension age. Backto60, a campaign group for the matter, lost a landmark case against the government last month in which compensation was refused. Baroness Altman believes that the affected women should receive help from the National Insurance (NI) fund to “offset some of the hardship caused.”
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Survey reveals that pension tax is too complex for three-quarters of firms 12 November 2019 The Association of Consulting Actuaries (ACA) has conducted a survey which has highlighted that most employers find the matter of pension tax highly confusing and have urged that it should be simplified. Current convoluted laws are discouraging both employees and their employers from contributing for retirement. Any amendments to the standing pension tax structure should focus on assisting lower income groups, with two-thirds of respondents stating that this is necessary, even if it has a detrimental effect on other groups. The idea of eradicating the Tapered Annual Allowance was favoured by 69% and this was regardless of whether this meant a reduction to the general annual allowance or not.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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