Pension savers still in the dark about tax

Pension savers still in the dark about tax

According to new research, more than half of pension savers are unsure of the tax rules surrounding the pension freedoms introduced earlier this year. A study conducted by employee benefits consultancy Portus found that 53 per cent of retirement savers are unsure about the taxation of pensions, while only 26 per cent were aware that they can take a quarter of their pension fund tax-free. Read more…

Pension top-ups ‘window’ opening soon

Pension top-ups ‘window’ opening soon

The government has issued a reminder that for a limited period starting in October, certain people will be able to make extra national insurance contributions to top up their state pension. Between 12 October 2015 and 5 April 2017, men born before 6 April 1951 and women born before 6 April 1953 will be able to make Class 3A voluntary contributions to boost their pension Read more…

Pension participation hits new high

Pension participation hits new high

Workplace pension participation has hit its highest level in a decade with young people among the biggest winners, new research has found. Office for National Statistics figures published on 16 July revealed that overall, 70 per cent of eligible employees –13.9 million people – paid into a workplace pension in 2014, a 15 per cent increase in two years. More than half (54 per cent) Read more…

New Pension and Property Inheritance Rules

New Pension and Property Inheritance Rules

Passing on your pension If you have a pension pot that you would ultimately like to pass on to those you love, you’ll be pleased to hear that it is now possible to pass your pension pot on to your children and grandchildren at either no tax or at the beneficiaries income tax rate. As of April 2015, the 55 per cent tax rate that Read more…

Regulator issues new auto-enrolment guide

Regulator issues new auto-enrolment guide

A new step-by-step guide to help small businesses get ready for their automatic enrolment duties has been launched by the Pensions Regulator. The online guide, written specifically for employers with between one and 50 staff, explains how to complete key tasks such as knowing when to be ready, providing a point of contact for the regulator, checking who needs to be enrolled and creating a Read more…

Webb calls for pensions tax relief reform

Webb calls for pensions tax relief reform

Pensions Minister Steve Webb has called for a 33 per cent flat rate to be introduced for pensions tax relief, replacing the 40 and 45 per cent rates for higher earners. Mr Webb was speaking at an 11 February event organised by the Resolution Foundation think tank, titled Today’s Workers, Tomorrow’s Retirement Problem. He told delegates: “You would be able to say to the public Read more…

‘Pot follows member’ to start in 2016

‘Pot follows member’ to start in 2016

A new system to stop workers losing small pension pots as they move from job to job is set to be launched next year. Under the initiative, due to take effect from autumn 2016, workers will initially be offered the option of consolidating their pension pots, before an automatic system is rolled out. Pensions Minister Steve Webb said on 11 February: “If we fail to Read more…

Auto-enrolment reminders on the way

Auto-enrolment reminders on the way

All small and micro businesses in the UK are to receive a written reminder about their auto-enrolment responsibilities. From the end of January, more than 1.5 million businesses across the UK will start receiving letters from the Pensions Regulator confirming their staging date – the date when they need to be ready to meet their automatic enrolment duties. The regulator already writes to employers 12 Read more…

Small employers ‘lack confidence on pension issues’

Small employers ‘lack confidence on pension issues’

Less than a quarter of small and micro employers feel confident about dealing with pension issues and many expect to turn to accountants for help. The findings come from research carried out by NEST (National Employment Savings Trust), a pension scheme that any employer can use to meet their new automatic enrolment duties. The research, published on 12 November, revealed that 74 per cent of Read more…

Employers urged to act now on auto-enrolment

Employers urged to act now on auto-enrolment

Hundreds of thousands of small businesses have been urged to check when they need to meet their new workplace pensions duties. The call from the Pensions Regulator, the UK regulator of work-based pension schemes, follows research published on 24 September revealing that 19 per cent of small employers (employing between five and 29 people) and 49 per cent of micro employers (employing up to four Read more…