An occupational pension scheme is a retirement savings plan provided by an employer for its employees. The most common plan is the group personal pension (GPP), while other ‘contract-based’ ‘defined contribution’ schemes are the stakeholder and group self invested personal pension (Sipp). Pensions run by a trustee board are the money purchase defined contribution scheme and the once-popular defined benefit plan (such as final salary).
Aviva research: 80% aware of the Budget’s pension changes.
Mercer appointed as provider for 200 institutions.
DWP research: Scheme membership has risen to 35%
TPR research: 23% could not identify investment charges.
Savers taking tax-free lump sum now have 18 months to decide how to use savings.
Aon Hewitt research: Impact of Budget on DC pension design.
Annuities, open market options and drawdowns explained.
These include pensions and private medical insurance.
Employers must not make age-based assumptions about employees’ needs.
Employees need to understand the reality of retirement.
It used savings to fund auto-enrolment.
It has focused on its pension and flex offerings.
Careful planning can help employers avoid getting stuck in an auto-enrolment traffic.
Employers can get expert advice to help.
In pensions, the answer is likely to be no.