The table below summarises the changes confirmed today, what the system was like before the Budget, how it works in the interim period up to April 2015 and what is planned when the full flexibility starts next April: Policy Before Budget Interim changes up to April 2015 Full flexibility from April 2015 AGE: when you can access your pension fund Age 55 Age 55 Age 55 – rising to age 57 from 2028 WITHDRAWING SOME MONEY: The rules on taking…
People will increasingly realise the benefits of redefining retirement In the past, retirement was not an active decision – it just happened to you, dictated by your employer, a pension scheme or society: Traditional UK retirement was not an active choice, but an event that happened, dictated by outside forces rather than being a positive and considered decision. For example most people automatically stopped work at their pension age or were offered the chance to retire early with a good…
Older workers can be the key to economic growth Over 700,000 people may retire each year – helping them stay at work means more income to businesses and individuals Working just one year longer would add 1% to economic growth for the nation I am delighted to have been appointed as the Government’s Older Workers Champion. Having worked on the issues surrounding rethinking retirement and extending working lives for many years, I am delighted to be able to play a…
29 June 2014 Right to request flexible working for all starts tomorrow Government giving green light to redefine retirement – encouraging flexible working in later life A win-win-win – better for older people’s health and wealth and better for the economy All workers can request flexible working: From 30th June, the Government is giving all workers the right to request flexible working. So far, parents and carers can ask their employer to allow them to work flexibly, but now all…
23 June 2014 Budget pension reforms could help kick-start saving for social care New tax breaks will help savers build up care savings funds – could be with pensions or ISAs My Budget consultation response highlights urgency of addressing social care funding crisis In my response to the Chancellor’s 2014 Budget on pension reforms, I have included a section explaining how the pension freedoms could be used to help kick-start a culture of care saving. This probably needs to be incentivised…
10 June 2014 Here is my response to the Treasury’s consultation on the issues relating to transfers from Defined Benefit to Defined Contribution pension schemes. Members of unfunded public sector schemes will no longer be allowed to transfer, however members of funded schemes should be able to take their money out. Here are my thoughts Transfers should be permitted from funded DB schemes to DC schemes Some schemes could benefit from members transferring small entitlements due to the savings in…
9 June 2014 Providers cannot be trusted to offer the Government’s Guidance Guarantee Some may look after customers but too many do not – and they cannot be impartial As FCA continues its study of the Retirement Income Market customers need reassurance that past failings will not be sanctioned again Providers do not know their customers: Pension providers cannot be relied upon to offer the Government’s promised free, ‘impartial’ at retirement guidance service. The Association of British Insurers has suggested that…
1 June 2014 Government is right to legislate to permit Collective Defined Contribution pensions but beware over-optimistic claims In theory, they are better for employers than traditional final salary and better for workers than traditional defined contribution In practice, they still suffer from market and actuarial risks and new pension freedoms may mean they are less attractive for members Lower earners may subsidise higher earners -Younger members may subsidise older members The Government is set to unveil another Pensions Bill…
20 May 2014 New Budget flexibilities dramatically increase appeal of pensions auto-enrolment Opt out rates should fall significantly ‘Buy-one-get-one-free’ deal too good to miss for most The Pensions Policy Institute has today published new research highlighting that auto-enrolment is now far more attractive than previously expected. Opting out of auto-enrolment is turning down free money: Even for older workers, who were the group least likely to benefit from staying in their employer’s scheme, the flexibilities introduced to pension savings in…
Yet another report highlighting the crisis in social care The NHS could be bankrupted by failing to address social care properly – Government needs to introduce incentives to save for care Minimum wage, appalling working conditions and constant cost-cutting by private firms and councils leads to sub-standard care Integrate social care with healthcare – why the artificial distinction? Yet another report is released today highlighting the inadequacies of our social care system. Baroness Kingsmill has rightly highlighted the ongoing…