The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
The cap will be regulated by The Pensions Regulator (TPR) mirroring the work of the Financial Conduct Authority (FCA) for personal and stakeholder pensions.
Read the government response to the consultation on capping early exit charges for members of occupational pension schemes (published 15 November 2016).
The government will consult on the regulations in early 2017, with the cap set to come into force in October 2017.
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Over 1.5 million personal State Pension forecasts requested 18 November 2016
In the 6 months after the launch of the new State Pension in April, more than 1.5 million personal State Pension forecasts were issued .
This compares to the 860,000 State Pension forecasts issued in the previous 12 month period.
Eighty percent of the forecasts requested were viewed online, highlighting that people are welcoming the opportunity to access key information about their pension quickly and in real time.
This huge rise in people accessing the ‘ Check your State Pension ’ online service has been welcomed by the Pensions Minister, Richard Harrington who wants more people to plan early for retirement and take more control over their finances. He said: “Not only is the new State Pension system simpler, but it’s now easier than ever before for people to find out what they can expect to receive when they retire. Just as we’ve seen more people using online banking, so too are people welcoming the opportunity to take more control over their State Pension. I want to encourage everyone to use this online service to help them make informed decisions about their retirement, and I’m delighted that so many savvy savers are already doing this.”
‘Check your State Pension’ was available to the public on 11 February 2016. In that month it received 18,000 visits, but by September 2016 this figure had risen significantly to 343,000.
Anyone of working age can use the service to access their State Pension forecast. It provides a personalised estimate of what they may receive and highlights any gaps in National Insurance contributions, and whether these can be filled with voluntary contributions.
User satisfaction with the online service is high, currently around 90%.
Check your state pension here .
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More steps required to simplify pensions tax system 22 November 2016
According to a poll run by PwC 65% of adults do not feel they understand well how workplace pensions are taxed and 75% do not feel they understand how Lifetime ISAs will work.
A poll this month commissioned by PwC reveals that 45% of UK adults saving into a pension scheme consider tax incentives to be an important factor. The poll shows 15% of UK adults saving into a pension scheme do not know what the tax incentives are. Most UK adults (65%) do not feel they understand well how workplace pensions are taxed.
Raj Mody, pensions partner at PwC, said:
“The current tax arrangements for pensions savings are clearly not simple nor intuitive to understand. One challenge is the way that tax reliefs work, a concept which just doesn’t seem to have the same impact as more direct top-up
The Chartered Institute of Payroll Professionals
Policy News Journal
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