Guest contribution
The pension challenge for small businesses and their employees: too big to ignore
- It is difficult to engage employers of small businesses in the realm of pensions where additional but optional administration is necessary; small business is difficult enough without having to be paternal.
- Until the pensions industry finds a way to tap into this market or government makes it more desirable for SMEs to want to set up pensions for their workers, a large
Too much too soon
- Pension legislation often carries unintended consequences. Rushing through new statutes without thorough analysis should be avoided; otherwise it could lead to more problems than solutions.
- An expert body to superintend the process of turning statute into reality might go a long way to reform the industry and the public’s view of pensions for the better.
Recent weeks
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Early access to pension savings
For some years, commentators have suggested that a new flexible ‘early access’ pension saving regime should be adopted in the UK. It is argued that not only would extra flexibility increase contribution rates because individuals don’t like locking money away, being able to dip into pension saving in times of financial hardship (e.g. unemployment) would prevent perverse situations
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A proper strategy around low-earners (James Lloyd, Social Market Foundation)
The key pension policy challenge for the next government will be developing a proper strategy around low-earners. The major reforms being implemented during the next Parliament, specifically the National Employment Savings Trust (NEST), will make it easier than ever before for low-earners to save for retirement. All employees will have access to a low-cost simple pension saving scheme, with a
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Create new savings instruments (David Willetts, Member of Parliament)
I show in my new book 'The Pinch' that the two most important forms of personal wealth - housing and pensions - belong disproportionately to the baby boomers. It is proving much harder for the younger generation to get started on the housing ladder and to start building up pension savings. Traditional company pension schemes were a kind of contract between the generations and as that has