State Pension: Anger as benefit of deferral cut by 50%

State Pension: Benefits for deferral cut by halfThe Government has announced that from April 2016, the increased State Pension given to people who decide to defer retirement will be cut by almost 50%. Currently, people who defer taking their State Pension can choose to receive a higher income when they do finally retire, or receive a lump sum. The existing rules mean that people who defer, will get an extra 10.4% added to their State Pension each year, when they finally take the it, for every 12 months they defer. Alternatively, for ...

Automatic work place pension scheme working better than expected

Retirement planA new study conducted by Towers Watson, a firm of pension consultants, has revealed that 90% of employees are continuing their membership after being enrolled automatically in a work place pension scheme. Over the past few years, concern has been mounting that workers are generally not saving enough for retirement. This led to the introduction of the Auto Enrolment, starting in October last year, which now means employers must automatically enrol employees into a work place pension. Retirement experts had been concerned ...

Retirement: DWP outlaw final salary pension ‘bribes’

A new code of conduct introduced by the Department for Work and Pensions (DWP) will stop employers offering members of Final Salary pensions cash incentives to leave the scheme. Transfers from Final Salary pensions Over the past few years an increasing numbers of employers have been offering members of Final Salary pensions, also known as Defined Benefit pensions, financial incentives to leave the scheme, thereby reducing an employer’s long term liabilities. Retiring soon? Our advisers can help you make the right ...

Gap widening between private and public sector pensions

The Association of Consulting Actuaries (ACA), the representative body for UK consulting actuaries, have argued the gap between private and public pensions is widening. ACA research shows nine in 10 private sector defined benefit (DB) schemes, often known as final salary pensions, have been shut to new entrants and four out of 10 closed to future accrual. The survey which involved 468 employers running more than 560 pension schemes highlighted the decline of defined benefit pension schemes. Automatic enrolment The survey also considered the effects of the government’s plans for auto enrolment. The private sector contains 26 million employees and the ACA said a ...