Pension Schemes Act becomes law
The Pension Schemes Bill passed into law on Wednesday, delivering major reform to the UK pensions worth around £2 trillion. Over 20 million workers could benefit from the reforms, with the government estimating an average worker could receive up to £29,000 extra by the time they retire. The act will require pension schemes to prove […]
The pensions IHT grenade
Pension funds and death benefits will soon be pulled into the scope of IHT. Nina Cherry, wealth consultant at Simplify Consulting, explains what this means for providers and advisers. From 6 April 2027, most unused pension funds and death benefits will be pulled into the scope of inheritance tax (IHT) purposes. This means that the […]
Pension reforms target gender gap for seven million local government workers
The government will make unpaid maternity leave automatically pensionable for Local Government Pension Scheme (LPGS) members from April 2026, affecting nearly seven million workers, of whom around three quarters are women. The reforms will also introduce statutory gender pension gap reporting and equalise survivor benefits, regardless of relationship type. The LGPS operates as a defined […]
Pension value to be scrutinised, FCA says
Pension schemes will need to publish clear data on their performance, costs and quality of service, under proposals announced this month by the Financial Conduct Authority (FCA), the Department for Work and Pensions (DWP) and The Pensions Regulator (TPR). If a pension offers poor value, firms and trustees must then fix it by moving savers […]
Research reveals £53k pension gap for divorced women
Divorced women typically have £53,160 less in pension savings than divorced men in the UK, with men walking away with £85,800 compared to £32,640 for divorced women. The research by Mercer, now:pensions and the Pension Policy Institute (PPI) also reveals a significant pension wealth gap among married couples, with men holding £111,540 and women’s average […]
Later life lending up 43% year on year
The value of later life lending in the first quarter of 2025 increased by 43% year on year with nearly 40,000 new loans advanced to older borrowers; identified as those over the age of 55. The latest UK Finance Later Life Lending Update covering Q1 2025 shows there were 38,510 new loans advanced to older […]
Dormant Assets scheme pledges a further £330m to community causes
A government scheme to use assets from dormant accounts to ‘drive meaningful change’ for communities has exceeded expectations with £1bn worth of funding unlocked. This week it has announced a further £440m is being divided between social causes which break down barriers to work for disadvantaged young people, tackle problem debt, and social investment wholesalers; […]
New taskforce launched for pension scheme engagement with social ESG investing
A new Minister-led taskforce will help pension schemes address the risks and seize the opportunities of the “social” element in ESG investing. Social factors can include issues ranging from workforce conditions and supply chains to community engagement, consumer protection and modern slavery, among others. The taskforce – led by the Minister for Pensions – will […]
DWP issues Transfer Regulations clarification to stop delays
The DWP and the Pension Regulator have issued a joint statement and amended guidance on transfer regulations introduced in November 2021. The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021 which were introduced in November last year give providers the right to refer the customer for guidance or even refuse a transfer if […]
PIMFA calls for British Steel Pension Scheme members to be compensated
PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, has called for members who were wrongly advised to transfer out of the of the British Steel Pensions Scheme to be transferred into the Pensions Protection Fund in order to ensure that they are able to receive a […]
Pension Superfund expands board appointments
The Pension SuperFund (PSF) has announced the appointment of eight Non-Executive Directors (NED)/Board members, covering both the corporate and sponsor operational sides of the business. David Barral: ex CEO of Aviva UK Life and also former Chair of the retirement and savings committee at the ABI; Sheila Gunn: employment and pensions lawyer in practice for 23 years; currently a NED […]
Retirement Living Standards now accessible to 35 million savers
Up to 35 million savers now have access to the Pensions and Lifetime Savings Association (PLSA)’s Retirement Living Standards through their pension scheme’s communications. In total, 124 organisations are using the Standards, including over 100 pensions schemes and some of the largest and best-known industry brands. A further 25 schemes have signalled their intention to […]
HMRC confirms £22 million in overpaid pensions withdrawal tax
Time to simplify the system as pensioners reclaim £22 million in overpaid tax from HMRC. Latest HMRC statistics show that between 1st January 2022 and 31st March 2022, it paid out £22,317,529 to people who overpaid tax when they accessed their pensions flexibly. Due to the current system, anyone accessing a pension flexibly is taxed […]
Thousands could risk pension poverty after divorce
Latest figures from the ONS show that in 2020, there were 103,592 divorces granted in England and Wales, but with the new no fault divorce law that came into force on the 6th April, this figure is likely to increase in the coming years. Thinking about family finances may be the last thing couples want […]
Leaseholders on fixed retirement incomes could be denied equity release
New analysis reveals 450,000 homeowners in England and Wales are at risk of becoming mortgage prisoners because their leases have run down to less than 75 years, the crucial threshold for mortgage finance, including lifetime mortgages. The data compiled by Lifetime Mortgage Gateway Logistics (LMGL) shows there are currently an estimated 400,000 leaseholders in England […]
Pensioners urged to apply for pension credit
Pensioners and their loved ones are being urged to take-up Pension Credit, as a new government campaign is launched to help those of pension age with the cost of living. Starting this month, advertising for Pension Credit will feature in internet search results and on social media, before being expanded to national and regional newspapers. […]
Two-thirds plan to adopt “flexi-retirement” lifestyle
Latest research from abrdn reveals that two-thirds of those planning to retire this year will work part-time to keep up with the rising cost of living. The research, which surveyed 2,000 Brits showed that many would-be retirees are considering part-time work with two-thirds (66%) planning to remain in some form of employment in 2022 compared […]
State pension forecast to reach £200 per week in 2024
The state pension is expected to reach over £200 per week in 2024. Chancellor Rishi Sunak’s Spring Statement revealed that little help will be on offer for pensioners when the state pension rises by 3.1% in April 2022, which is less than half the current rate of inflation. Following this announcement, the Office for Budget […]
Pension withdrawals soar by 20% in 2021
The latest flexible payments from pensions data has been released Commentary for Personal and Stakeholder Pension Statistics: September 2021 – GOV.UK (www.gov.uk) Data shows that £8.3bn was flexibly withdrawn from pensions between April and December 2021 – a 19% increase on the same period in 2020, with 648,000 people accessing an average of £12,800 during this period. […]
Comfortable retirement now 4.9% more expensive
Pensioners must now spend more to cover basic living costs as funding a comfortable retirement has jumped by more than £2000 per year for couples. An industry report predicts that an extra £40,000 will be needed to fund a comfortable 20 year retirement. This year’s updated Retirement Living Standards (RLS) from the Pensions and Lifetime […]