Young people 'too poor to retire at same age as parents'
FT Adviser – 8 November
A report published by investment management house Rathbones, entitled ‘Too poor to retire’ has concluded that millennials will likely be less comfortable in retirement than their predecessors, if they get to retire at all. Decreasing home ownership, lower economic growth and investments and lack of private savings are all contributing factors to this conclusion.
EU employees’ status in UK will not change before 2021, says Government
People Management – 2 November
The Government has announced that the employment status of EU employees in the UK will not change until at least 2021, regardless of whether the UK receives a Brexit deal or not. This comes after a number of conflicting statements form MPs led to employer concern over the status of workers from the EU.
The new EU Posting of Workers Directive – implications for employers
Lewis Silkin – 1 November
Lewis Silkin examine the new European Union Directive on the posting of workers which was introduced in July 2018, and discuss how this will impact employers and what the implications of Brexit may be. There is now significant doubt over whether the ‘new Directive’ will be implemented in the UK and whether new laws would need to be made in its place.
Supreme Court rules against Barnardo's in ongoing pension battle
Charity Times – 8 November
The Supreme Court has ruled against Barnardo’s in a battle regarding how the charity must measure inflation with regards to its pension payments. The court has ruled that the ‘charity would be required to calculate the rate of inflation for its pension payments from the retail price index (RPI), rather than by the consumer price index, which is typically lower.’
Government launches CDC pensions consultation
City Wire – 6 November
The Government has launched a consultation on collective defined contribution (CDC) pension schemes and the legislation surrounding them. CDC schemes have been marketed as ‘rearing sustained investment returns’, where scheme assets would be pooled and invested collectively. The consultation period will last 12 weeks.
Quarter of Britons face retirement tax shock
FT Adviser – 5 November
A new Legal & General survey of more than 2,000 over-55s has revealed that 27% of respondents did not realise they would be taxed on their pension pot if they chose to withdraw all the money as cash. 37% of those surveyed did not ‘recognise the 25% threshold that is currently without tax charge’. These figures suggest more needs to be done to educate the workforce on the implications of withdrawing cash from a pensions pot.
Equalising for the effects of GMPs following landmark High Court case
Hogan Lovells – 1 November
A recent judgment from the High Court, that will affect Defined Benefit (DB) pensions, has decided that ‘pension schemes must equalise for the effect of guaranteed minimum pensions (GMPs) providing different benefits for men and women’. Hogan Lovells provide a full briefing note with details of the case.