Pensions & employee benefits roundup – September 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 August 2016.
Only 2% of employers offer group risk benefits to the over 65s
Health Insurance Daily, 3 August
More than half (53%) of employers have taken no steps to meet the needs of the ageing workforce, according to research from trade body Group Risk Development (GRiD). The survey also found that only 7% of employers have refocused their health, wellbeing and absence-management procedures to manage those with age-related conditions, while only 2% provide group risk benefits for those aged over 65.
Retail pension black hole widens by £6bn to match annual profit
The Telegraph, 13 August
Britain’s biggest retailers are grappling with a £6bn jump in their pensions scheme deficits, which threatens to dwarf stock market valuations and the industry’s profits for the year.
ABI publishes full year of pension freedom data
ABI, 15 August
The Association of British Insurers has published statistics for the first complete year since the Freedom and Choice reforms, from April 2015 to April 2016. The ABI is also publishing new data which shows the percentages withdrawn from pension pots and from what age groups. This new data indicates the majority of savers are taking a sensible approach, with 57% pots with 1% or less withdrawn during the last quarter.
Lifetime Isa launch called into question
Money Marketing, 15 August
Banks and fund groups are warning the Government’s failure to provide key details around the Lifetime Isa mean they will not be able to launch products in time for the April deadline. The Financial Times reports providers say they are waiting for critical information on how the Lifetime Isa will work in practice, such as account design, contribution limits and the bonus will be paid.
Webb warns Harrington not to backtrack on long service cap for PPF
Pensions Age, 18 August
Former Pensions Minister Steve Webb has warned the new Pensions Minister Richard Harrington not to backtrack on making changes to the Pension Protection Fund compensation cap for long service workers. When Webb served in the role as Pensions Minister he planned to increase the amount of money which long-serving staff can receive in retirement if their company folds.
HMRC plans clampdown on ‘luxury’ salary sacrifice schemes
CIPD, 18 August
HMRC has announced plans to limit the tax and national insurance contributions (NICs) savings from salary sacrifice schemes – paid for by employees through reductions in gross salary – in a move that experts say could dramatically redefine both the scale and nature of workplace benefits.
Capita ties with LV, Foster Denovo and Towry for retirement advice
Corporate Adviser, 19 August
Capita is teaming up with LV=, Foster Denovo and Towry to offer guidance and financial advice to members approaching retirement. Its new ‘At Retirement’ service is being headed up by Rob Tinsley who recently joined the organisation from Punter Southall’s Aspire to Retire operation.
Job satisfaction in early career ‘impacts health at age 40’
Health Insurance Daily, 24 August
Poor jobs result in depression, sleep problems and excessive worry. People who were unhappy with their job early in their careers are more likely to suffer from depression and back pain in their early 40s, researchers have found.
PLSA research: Young adults ‘want to save but can’t’
Corporate Adviser, 26 August
Young adults are not profligate with money but are stopped from saving because of short-term necessity, according to research amongst 18 to 35-year-olds from the Pensions and Lifetime Savings Association (PLSA). Asked what prevents them from saving, 48 per cent say the cost of living is too high and 43 per cent say their salary is too low. Just in five say their lifestyle stops them saving, less than the 30 per cent who cite the cost of their rent or mortgage.