PENSIONSANDSAVINGS.COM

Of course, with an aging population and high inflation, the costs of state pensions will rise, but that should not be a shock!  Of course Britain can afford to pay its State Pensions, this is a political choice of priorities. The UK has one of the lowest State Pensions in the OECD while most EU countries pay far more.  Cost-cutting need not mean attacking the core pension, raising State Pension Age or mass means-testing.  Increasing the number of years for…

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More pensions for low earners and young workers as auto-enrolment extension bill goes through house of lords. The legislation will ensure Government moves auto-enrolment to next stage, improving coverage and adequacy of workplace pensions. This is designed to pave the way for all workers under age 22 to be auto-enrolled and provide much larger pensions for lower earners. On Friday, the Extension of Auto-enrolment (No.2) Bill received its Second Reading in the House of Lords and should become law in…

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Ongoing interest rate rises confirm the value of pension freedoms.  Reforms have saved millions of pensioners from locking into record low annuity rates, without inflation protection or spouse cover.  As QE comes to an end, annuity rates have already increased as inflation and interest rates have risen.  Pension providers have a chance to redesign pensions and move on from one-size-fits-all thinking, with wider investment options and new ways of preserving spending power for later life.    Rising rates and inflation…

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It is only right to properly protect State Pensions in the middle of a cost of living crisis, especially after the past year’s real terms cuts.  State Pensions rose just 3.1% after earnings had increased over 8% as Government broke triple lock just when inflation soared past 10%.  Millions of pensioners must survive on just State Pension – around £10,000 a year or only £8,000 for older pensioners – lowest in developed world.  Means-testing of State Pensions is not the…

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Leaving State Pension Age alone for now is the right decision.    Accelerating Sstate Pension Age rises would be wrong when life expectancy increases have slowed or possibly reversed and huge differentials in healthy life expectancy remain.    Retirement support should not be determined just by chronological age – health, length of National Insurance record and income could be included.    Early access to Pension Credit would be another way to avoid rising old age poverty.  Welcome News: I am…

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BUDGET 2023 – It’s good news day for pensions! Chancellor takes brilliant bold decision to abolish Lifetime Allowance altogether. At last a move that is likely to benefit pensions, reduce complexity and increase employment. Abolishing Lifetime Allowance and raising Annual Allowance can facilitate more pension assets being invested to boost growth.   Government pays over £40billion a year into people’s pensions, so makes sense to use some for growth-boosting infrastructure, social housing, net zero and nature preservation investment. A new era…

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Great to hear that the Chancellor is planning to finally increase pension tax allowances.   Chancellor should abolish the ludicrously complicated Tapered Annual Allowance.   and increase the limits for Annual Allowance and Lifetime Allowance.   Current tax rules have turned a tremendous workplace benefit into a workplace penalty – driving early retirement and reduced working hours for many senior staff in the NHS I hope the rumours of changes to pensions tax allowances in the Budget will prove correct: Pensions are…

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