June 2024
19Jun

UK. ‘Serious disparity’ around retirement savings of people identifying as LGBTQ+

One in four (25%) people who identify as LGBTQ+ are not saving for their retirement, a survey has found. The research was released by Scottish Widows to coincide with Pride Month in June. It also found that just under a fifth (18%) of people who do not identify as LGBTQ+ report they are saving nothing towards their retirement. People who are LGBTQ+ were also less likely in the survey to say that they have taken financial advice. One in nine (11%) people surveyed who identify as...

June 19, 2024
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18Jun

UK. DC contributions exceed DB pensions for the first time

A report published today by Barnett Waddingham (BW), the leading professional services consultancy shows that for the first time, contributions paid by the FTSE 350 defined benefit (DB) scheme sponsors into defined contribution (DC) schemes exceeded those paid into DB schemes. BW conducted an analysis of the FTSE 350 companies with DB pension schemes over the last twelve months to 31 May 2024. The data reveals that contributions totalling £8.1 billion were paid into DB schemes (consisting of £4.7bn of...

June 18, 2024
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17Jun

UK. Election could create an opportunity for ‘radical shake-up’ in pensions

The start of a new parliament is a good time to stand back and ask some pretty fundamental questions about the UK pension system. Much of the complexity in the current system has arisen as a result of piecemeal changes, often because the government of the day was short of a billion or two to balance the books. But the promised pensions review under a potential new government offers a long-awaited opportunity to think strategically about the system as a whole...

June 17, 2024
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17Jun

UK. DWP Spending Review May Require PIP Recipients to Repay Money

The Department for Work and Pensions (DWP) provides State Pension and welfare benefits to about 22.7 million people across the United Kingdom. New numbers revealed in the 2024 Fraud and Error in the Benefit System report show that the overall number of benefit overpayments over the last year was £9.7 billion (3.7%), up from £8.3 billion in 2023. Personal Independence Payment (PIP) was implemented in 2013 to aid with additional expenditures associated with a long-term disability or health condition. The numbers reveal that...

June 17, 2024
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14Jun

UK. Labour manifesto confirms key pension priorities

The Labour Party has shared its 2024 manifesto, confirming plans to conduct a pensions review if elected, to consider what further steps are needed to improve security in retirement, and increase productive investment in the UK economy. In its manifesto, Labour said that it will act to increase investment from pension funds in UK markets, by adopting reforms to ensure that workplace pension schemes take advantage of consolidation and scale, and to deliver better returns for UK savers and greater...

June 14, 2024
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13Jun

UK. Auto-enrolment ambitions must go above and beyond just pensions

If I were to point to the most sensible decision made in pensions policy in the last 20 years, the introduction of auto-enrolment (AE) in 2012 would no doubt top the list. In one swoop, the mandatory law made saving for retirement the norm and improved the chances of maintaining a decent standard of living in later life for millions of employees. Of course, AE was never supposed to be the last word. It was meant to be the beginning of...

June 13, 2024
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12Jun

UK. WASPI women promised they’ll receive ‘apology and proper compensation’

WASPI women have received a compensation pledge ahead of July's General Election. Department for Work and Pensions ( DWP ) campaigners have called for WASPI women to receive payouts after the Ombudsman's damning report earlier this year. In its election manifesto, the Liberal Democrats has stated: "The women affected by changes to their state pension age should receive an apology from the government and should be given proper compensation." Director of public affairs Becky O'Connor welcomed the measures to widen pension participation to gig economy...

June 12, 2024
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11Jun

UK. Labour drops plan to reintroduce pension saving cap

Labour has dropped a plan to reintroduce a cap on how much people are allowed to save into their pensions before paying tax. Under the pensions lifetime allowance, pension pots over £1.07m faced an annual tax of £40,000 on average. The cap was scrapped in April but Shadow chancellor Rachel Reeves had vowed to bring it back, saying it could raise £800m a year. However, her party has now reversed the decision ahead of the release of its manifesto on Thursday, reportedly...

June 11, 2024
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10Jun

UK. DWP issues bank checks warning to pensioners following huge rise in fraud

The Department for Work and Pensions has stated it is reviewing thousands of pensioners' bank statements following a significant increase in fraud. Overpayments of Pension Credit, a supplement for older people with a low income, surged to £520 million in the fiscal year ending April 2024, a substantial rise from the £330 million the previous year. These overpayments incorporate £210 million worth of fraud, considerably more than last year's figure of £120 million. Both rises were highlighted as "statistically significant",...

June 10, 2024
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07Jun

Investigation into the Pensions Dashboards Programme

By National Audit Office Pensions dashboards are intended to allow people to view information about their pensions – including their State Pension – online, securely and in one place. The Department for Work & Pensions (DWP) expects that pensions dashboards will deliver significant benefits by supporting people to plan better for retirement, make more informed financial decisions and connect with ‘lost’ pension pots. Get the report here

June 7, 2024
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