The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
6 in 10 (60 per cent) expect to require an annual income of 50 to 100 per cent, or above, of their current income. Yet the current pension replacement rate in the UK is just 29 per cent. Low earners (earning £10,000-£15,000) can’t envisage living on much less than they do now, so more of them are targeting 100 per cent of their current income levels than people in other income brackets Two thirds of people are not confident that their income in retirement will cover their needs 17 per cent don’t know how much they’ll need
Helen Dean, CEO of NEST said,
“There isn’t a simple answer to how much is ‘enough’ in retirement. We often do this by working out a percentage of each individual’s final earnings. We call this a replacement rate. But our recent work suggests that this can be too much of a blunt instrument. What an individual needs in later life will depend on things like income levels during working life, whether housing costs have to be taken into account, whether there’s potential income from a partner and aspirations for later life. It’s worrying that many consumers seem to have unrealistic expectations about their retirement income. Many are simply not saving enough to match their expectations. Auto enrolment gives people a big helping hand – not only to get into the savings habit but also by boosting their pots with employer contributions and tax relief. However, we need to start thinking about how to help people think about the next steps once they’re in - what are their aspirations and likely needs in retirement and how can saving in a pension help them get there?” How much is enough? is one of the key questions to be tackled at the NEST Insight conference this week. The event marks the launch of the new NEST Insight unit , which will work in partnership with other organisations and academics to tackle the big challenges facing the DC generation of savers.
Read more about the research from NEST .
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Pension schemes newsletter 79 30 June 2016
The latest pensions schemes newsletter from HMRC Includes a reminder that when making pension flexibility payments, they are not annual payments.
HMRC are aware that when making pension flexibility payments, some pension scheme administrators are still treating these as annual payments and calculating PAYE on a month 12 basis instead of week 1/month 1 basis. Flexibly accessed payments are not annual payments. You should tax these payments using either the emergency code on a week 1/month 1 basis or, where you have a current year P45; using that code on a week 1/month 1 basis. The newsletter also highlights that the Finance Bill 2016 will receive Royal Assent later than usual this year. In recent years the Finance Bill has received Royal Assent in the July after its publication. As the Public Bill Committee consideration of the Finance Bill 2016 is only due to conclude on 14 July, Royal Assent will be later this year.
Other topics in Pension schemes newsletter 79 - June 2016 include the Annual Allowance, change of scheme details, the Lifetime Allowance and pension scheme transfers.
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NISPI countdown bulletin – June 2016 1 July 2016
The National Insurance Services to Pensions Industry (NISPI) countdown bulletins provide additional guidance for pension scheme administrators on the ending of contracting-out in April 2016.
The latest countdown bulletin includes information on:
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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