Pensions & employee benefits roundup – March 2016
Throughout the month our research team keep a close eye on what is happening in the pensions and employee benefits industries. Here is a roundup of the best news articles and stories for February 2016.
Longer Lives, Stronger Families?
SMF, 1 February
The UK’s society is ageing. According to current projections, the proportion of the UK population aged over 65 will grow from 18% in 2014 to 25% in 2044.Two factors lie behind this. First, people are on average living later into life. A second contributory factor is a bulge of people in the ‘babyboomer’ cohort who are approaching retirement age.
Skipped middle: Britons in 50s 'losing wealth to old and young relatives'
The Guardian, 9 February
British parents in their 50s will see their inheritances diminished as their older parents run down their assets to allow grandchildren to get on the housing ladder or to pay for their own social care needs, research suggests.
Employers are underestimating cost of National Living Wage
REBA, 11 February
PwC found that employers surveyed regarding the effect of the NLW estimated that the average cumulative cost increase of paying the wage will be £1.6 million this year, rising to £11 million by 2020.
Pension study finds even high earners will 'need to work to 85'
The Telegraph, 15 February
Younger generations starting work today will have to work into their mid-eighties to retire on an income worth two-thirds of their salary, according to an in-depth study of the pensions market.
Pensions still the most effective savings option, says IFS
BBC, 17 February
Pensions will remain the most tax-efficient form of savings, despite forthcoming tax changes, the Institute for Fiscal Studies (IFS) has said.
Cancer cases rise in UK, says charity
BBC, 17 February
More than 352,000 people are diagnosed with cancer in the UK each year - a 12% increase in the rate since the mid-90s, Cancer Research UK says.
One in three targeted by pension scams
FT Adviser, 18 February
A third of people aged 55 or more have been targeted by potential pensions scams in the last three months, according to new figures. Consumer Intelligence interviewed 610 people aged 55 plus who hold private pensions online between November and December. The survey showed 35 per cent had been offered free pensions advice or investment opportunities by phone, text, or email.
Employment increased by 205,000 to 31.42 million in the three months to December 2015 from the previous quarter, according the Office for National Statistics (ONS). The employment rate now stands at a record-breaking 74.1 per cent as jobs growth has soared and the number of unemployed people fell to 1.69 million – 60,000 fewer than for July to September.
UK welfare and pension department trials new video technology for British Sign Language users
Global Government Forum, 19 February
The UK government department responsible for welfare and pension policy is piloting a new video technology to enable deaf and hard of hearing citizens to contact it more easily. The Video Relay Service lets British Sign Language users communicate with the Department for Work and Pensions (DWP) via a sign language interpreter.
Research highlights the need for pension education
Money Observer, 23 February
Ipsos Mori surveyed 2,017 participants, all of whom are contributing to a pension scheme. However, when asked what type of scheme they were in - defined benefit or defined contribution - more than two in five (42 per cent) did not know.
Treasury to legislate against master trust proliferation
Corporate Adviser, 24 February
Rules surrounding the operation of master trusts will be tightened up by new legislation announced by Treasury Minister Harriett Baldwin yesterday. Baldwin said the Government had considered bringing in tighter requirements on master trusts within current legislation passing through Parliament but had not had time.