Analysis – Page 7
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AnalysisWhat is the lie of the land for workplace pension schemes?
In May, the Pensions Policy Institute (PPI) published its report Value for money in defined contribution (DC) workplace pensions. This considered the definition of value for money in this context, as well as how both members and employers can gain value from their schemes.An increased focus on gaining value from ...
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AnalysisThe Pensions Regulator should consider British Home Stores’ demise a wake up call
Need to knowThe Pension Protection Fund caps its compensation.Up to 600 UK pension schemes will never pay full benefits.A pension scheme must not adversely impact an employer’s sustainable growth.The Pensions Regulator (TPR) is under renewed pressure to support employers with large pension scheme deficits following the collapse of British Home ...
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AnalysisFive key messages to communicate around pensions re-auto-enrolment
Need to knowPensions re-enrolment happens at an employer’s three-year staging date anniversary.Explain the change early, highlight what those employees are outside of the scheme have been missing out on but make it clear they can stay opted out, although they must actively say so.Keep messages bite-sized, accessible and relevant.Given the ...
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AnalysisWhat will the lifetime Isa mean for employers and staff?
A Lisa is a Lifetime individual savings account (Isa) and it is a new way to save from post-tax income, coming in April 2017. It is aimed at those targeting their first home purchase. It comes with an incentive, similar to a pension, where the government will give a top ...
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Analysis
8-11: Benefits on offer
Salary sacrifice arrangementsMore than three-quarters (78%) of respondents offer benefits to all staff via a salary sacrifice arrangement, according to the Employee Benefits/Xerox HR Services Benefits research 2016, which surveyed a total of 338 respondents in May 2016. This is six percentage points lower than the 84% of respondents that ...
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AnalysisEducating employees about potential pension scams
Need to know:A February 2016 High Court ruling has raised concerns around savers’ susceptibility to pension scams.Employers can play a role in educating staff about scams to help them avoid this risk.Signs to look out for include cold calls and pressure to make a transfer, among others.Employers shoulder a great ...
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AnalysisBack to basics on pensions auto-escalation
Need to knowAuto-escalation is a design built into a pension scheme that automatically increases contributions on a set date at regular intervals, for example, April each year.While it is similar to the Save More Tomorrow concept in the US, auto-escalation has not yet taken off to any great extent in ...
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AnalysisBuyer’s guide to contract-based defined contribution pension schemes
What are contract-based defined contribution (DC) pension schemes?Defined contribution (DC) schemes are pensions that build a monetary pot for the employee. They are referred to as contract-based because the employee has a contractual agreement with the pension provider.What are the origins of contract-based DC pension schemes?DC schemes were introduced in ...
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AnalysisEmpowering everyone to save for retirement
Need to know:The introduction of the new state pension could have implications for what support employers offer and how they communicate this.Although auto-enrolment and the new state pension go some way to reducing inequality in pension provision, there is still much more to be done.Employer matching and auto-escalation could encourage ...
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AnalysisHow to create a benefits strategy for an 'ageless' workforce
Need to know:Workplaces are becoming increasingly multi-generational.But this does not necessarily mean employee benefits should also become increasingly segmented and generation-specific.The answer is likely to lie more in segmentation and targeting of benefits communications than employee benefits themselves.Many workplaces are becoming ever more age-diverse as the working population ages, and ...
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AnalysisHow can employers help staff maximise their options under the pension freedoms?
Need to know:Some employers have adjusted their pension schemes in response to the pension freedoms, and others are investing more time and effort in offering financial education.While some, often wealthier and more financial savvy, employees have taken advantage of the new freedoms, many others are struggling to navigate the new ...
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AnalysisUnderstanding pensions governance
From April 2015, all firms that operate workplace pension schemes have been required to establish and maintain an independent governance committee (IGC), which has a clear duty to act independently of the business. All IGCs must produce a publicly available annual report setting out information on the schemes’ value for ...
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AnalysisHow much is a good-quality pension scheme really worth?
Offering a good-quality pension scheme that goes beyond the legal minimums can be an effective tool to recruit, retain and engage employees.What is the value to employers of offering a good-quality pension scheme?There is a very strong and increasing focus on pensions. With the move away from defined benefit schemes, ...
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AnalysisHow can technology be used in workplace pension schemes?
Need to know:The pensions freedoms mean there is more need for employers to facilitate online access to pensions.Modellers and apps are helping people map out potential retirement options.Robo-advice is providing tailored guidance to employees without the need for a financial adviser.Some platforms can link with other pension pots, personal savings ...
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AnalysisWhere does responsibility lie for educating staff about their options at retirement?
Need to know:Nearly a year after the introduction of the pension freedoms in April 2015, confusion still exists around these.Pension scheme providers have a key role to play in guiding staff to information sources such as Pension Wise.Establishing quality standards around at-retirement products could make it easier for staff to ...
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AnalysisTelent futureproofs its default investment strategy
Futureproofing its default investment strategy against potential legislative change was a key objective for technology services firm Telent. However, when it introduced its current arrangement in 2013, it could not have predicted just how radical the pension reforms that took effect from April 2015 would be. And while built-in flexibility ...
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AnalysisAssessing the limitations of the pensions allowance changes
On 6 April 2016 changes to both the annual and lifetime pensions allowance limits will come into effect. From this date, the annual allowance will be gradually reduced from £40,000 to £10,000 for those earning between £150,000 and £210,000 a year, while the lifetime allowance will reduce from £1.25 million ...
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AnalysisInfographic: What is the maximum that can be paid tax-efficiently into a pension?
An infographic demonstrating the maximum that can be paid tax-efficiently into a pension in light of the annual allowance.Read more about how the changes to lifetime and annual allowances will affect higher earners.
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AnalysisHow will the changes to the lifetime and annual allowances affect higher earners?
Need to know:The lifetime allowance for pension contributions will be reduced from £1.25 million to £1 million from 6 April 2016.From April 2016, those earning between £150,000 and £210,000 a year will face a tapered annual allowance for tax relief from £40,000 to £10,000.Communication can be used to ensure that ...
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AnalysisBack to basics on lifestyle strategies
Need to know:Lifestyle funds gradually move an employee away from high-risk, high-return assets into lower-risk, lower-return assets as they approach retirement.Following the introduction of the pension freedoms, fewer people are buying an annuity, which raises the question of whether lifestyle funds are an appropriate default strategy.With the introduction of the ...