Displaying items by tag: pensions
Monday, 21 January 2019 12:33
24 firms wound up since 2015 Insolvency Service reveals
Since 2015, the Insolvency Service has applied to the courts to wind-up 24 companies that have carried out a form of pension misuse.
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Monday, 21 January 2019 10:46
XPS Pensions backs CDC pension proposal with caveats
XPS Pensions Group, the influential pension consulting and administration firm, has voiced its support for the government’s proposal to introduce Collective Defined Contribution pension schemes.
In November, the DWP detailed its plans for the new type of occupational pension scheme which will be subject to a 0.75% charge cap with the aim of keeping costs down. Royal Mail is already looking at introducing a CDC.
The government gave the green light last year for CDCs and plans to legislate for them in due course although critics have already warned it could take years for CDCs to arrive and they may risk fluctuating income for members in retirement because of their structure.
XPS says in its submission to the government on the proposal to introduce CDCs that they could provide “better outcomes” for employees than traditional DC schemes.
However, it said they may take choice away from members and present additional risks so it is “critical they are well designed and managed.”
XPS Pensions Group says there are three key areas the DWP and Pensions Regulator will need to consider to ensure the development of a successful CDC framework. These include:
1. Sustainability and resilience of CDC schemes for the future
2. How to ensure fairness of outcomes between generations
3. Member understanding and expectation
Consultation on CDCs ended last week.
Jacqui Woodward, senior consultant at XPS Pensions Group said: “In our view it will be possible to develop an appropriate disclosure framework that adequately communicates CDC benefits to members.
“However, we would caution against underestimating the risks of CDC schemes in the rush to get them established. It is worth taking time to make sure that the new types of scheme can offer a genuine and safe alternative to members and we look forward to providing our input to further consultations on the detailed design of CDC arrangements.”
In November, the DWP detailed its plans for the new type of occupational pension scheme which will be subject to a 0.75% charge cap with the aim of keeping costs down. Royal Mail is already looking at introducing a CDC.
The government gave the green light last year for CDCs and plans to legislate for them in due course although critics have already warned it could take years for CDCs to arrive and they may risk fluctuating income for members in retirement because of their structure.
XPS says in its submission to the government on the proposal to introduce CDCs that they could provide “better outcomes” for employees than traditional DC schemes.
However, it said they may take choice away from members and present additional risks so it is “critical they are well designed and managed.”
XPS Pensions Group says there are three key areas the DWP and Pensions Regulator will need to consider to ensure the development of a successful CDC framework. These include:
1. Sustainability and resilience of CDC schemes for the future
2. How to ensure fairness of outcomes between generations
3. Member understanding and expectation
Consultation on CDCs ended last week.
Jacqui Woodward, senior consultant at XPS Pensions Group said: “In our view it will be possible to develop an appropriate disclosure framework that adequately communicates CDC benefits to members.
“However, we would caution against underestimating the risks of CDC schemes in the rush to get them established. It is worth taking time to make sure that the new types of scheme can offer a genuine and safe alternative to members and we look forward to providing our input to further consultations on the detailed design of CDC arrangements.”
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Monday, 21 January 2019 10:35
Drawdown investors market plunge fears and strategy revealed
Major stock market moves on one day could prompt nearly 60% of income drawdown investors to revamp their portfolios, with 21% moving their money into cash, according to a new study.
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Tuesday, 15 January 2019 15:37
Selectapension winds up DB pension advice arm
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Monday, 14 January 2019 11:57
SIPPs and SSAS firm expands with 4 senior hires
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Wednesday, 09 January 2019 12:19
Experts hail pensions cold calling ban which starts today
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Tuesday, 08 January 2019 12:18
Fears over MPs' probe into contingent charging
MPs on the Works and Pensions Committee have voted to investigate contingent charging on pension transfers but some in the industry are sceptical about the benefits of such a move.
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Monday, 07 January 2019 11:56
Public ‘expects State Pension age to rise to 70’
The UK public expects the age at which they are entitled to receive the State Pension to increase to 70, a new survey has found.
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Thursday, 03 January 2019 12:41
New survey reveals pension worries
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Thursday, 03 January 2019 11:21
Warning as State Pension marks 110 years
The State Pension is 110 years’ old this week but an increasingly ageing population could spell future uncertainty according to experts.
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