Pension policy changes will cause 2-3 million more retired workers to live on inadequate incomes by 2060, on top of 12m already forecast
Hymans Robertson, the leading pensions and benefits consultancy, analysed who would benefit from investing in a Lifetime ISA (LISA), the new long-term savings vehicle launched by the Chancellor in this week’s Budget.
If everyone under 40 switches to a Lifetime ISA, the Treasury will net £1bn per year
Hymans Robertson, expects to see significant growth in the number of employers providing long-term savings guidance to employees as a result of the Financial Advice Markets Review (FAMR).
Budget 2016 - predictions and comments - ‘No changes to pensions tax relief’ in Budget means a horrendously complex system of annual and lifetime allowances will hit 2% of taxpayers. A ‘tax on jobs’ could replace sweeping changes to pensions tax relief netting £13.8bn for Treasury.
Those who currently face the biggest savings shortfalls in retirement are the ‘squeezed middle’ of 40% tax payers (see table 1 below). This is based on an analysis of over half a million people saving into Defined Contribution (DC) pension schemes through Hymans Robertson’s Guided Outcomes™ platform. A move to a flat rate of pensions tax relief, a move being considered by the Chancellor, will penalise these middle class savers discouraging them from putting aside sufficient money for retirement.
The Security of DC Assets Working Party (the ‘Working Party’) has launched the first guide for trustees to help them explore the levels of protection in place for DC assets. It aims to provide a framework as well as give trustees of DC schemes a steer on the questions to ask advisers, such as investment consultants and lawyers, to improve levels of understanding of the protections in place for members. It also highlights key areas to explore when seeking to change platform provider or fund managers.
The workforce of ScottishPower, the energy company, is now using Hymans Robertson’s Guided Outcomes™ (GO™) technology.
Hymans Robertson welcomes the planned retention of Exempt Exempt Taxed (EET) pension taxation
Hymans Robertson has announced succession plans for its LGPS Investments team
Chris Noon comments on today's DWP announcement
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