The latest release from the Office for National Statistics shows how the income levels of retired households have changed over the last 40 years. Malcolm McLean, Senior Consultant at Barnett Waddingham, comments on the release.
An analysis by economists has found that more than a million women are worse off by an average of around £32 a week, as a result of the increase in the state pension age. The Institute for Fiscal Studies (IFS) found the increase in the state pension age for women from 60 to 63 between 2010 and 2016 was saving the Government over £5bn a year, but hitting the household incomes of those women affected. Although the increase in the state pension age had boosted employment, as more women stayed in work, the extra wages only partially offset the potential pension income they would have received.
Provisional estimates from the Office for National Statistics (ONS) on the growth of household incomes since 2008 have been published this morning, Friday, 28 July.
Malcolm McLean, Senior Consultant at Barnett Waddingham, said; “I am sure we are all sympathetic to the problems people, with “demanding jobs”, would have in working on to these much higher ages. In an ideal world might like to see the State Pension Age (SPA) frozen at age 66 for everybody.
Work and Pensions Secretary David Gauke has announced the state pension age will rise from 67 to 68 from 2037, bringing it forward by seven years.
The Financial Conduct Authority has today published the interim findings of its Retirement Outcomes review. This is the first major comprehensive study into how the retirement income market is changing since the pension freedoms were introduced in 2015. Malcolm McLean, Senior Consultant at Barnett Waddingham, is concerned about some of the findings.
The Independent Review of Employment Practices in the Modern Economy was commissioned by the Prime Minister on 1 October 2016 to consider how employment practices need to change in order to keep pace with modern business models. The Review which was led by Matthew Taylor, Chief Executive of the Royal Society of the Arts, has now produced a wide ranging report which was published this morning.
Following the publication of the Pensions Regulator (TPR) research into “how UK employers are meeting their auto enrolment (AE) duties following the completion of their declaration of compliance”, Rob Thomas, Associate at Barnett Waddingham, shares his thoughts on the statistics.
The Financial Times have reported the new pensions Minister, David Gauke, has conceded that without a clear Commons majority he did not see “a particular consensus emerging” for an overhaul of retirement savings incentives.
The Pensions Regulator (TPR), has today published new data which shows that trustees of pension schemes who fail in their basic duties can expect to receive a penalty from TPR. Sara Cook, Associate at Barnett Waddingham, shares her opinion on TPR’s warning.