Public hostility towards the pensions industry contributes to Britain’s lack of a savings culture, according to a report by Michael Johnson, research fellow at the Centre for Policy Studies.
The report, Put the saver first: catalysing a savings culture, puts forward 104 recommendations, including 19 primary proposals, for reform of the pensions industry.
Specifics proposals for the industry include establishing:
- An industry-wide defined contribution (DC) pension pot consolidation service, which should facilitate the payment of contributions and transfer values, with a bridge across to the national employment savings trust (Nest); and
- An annuities clearing house, in which all annuity providers participate. The annuity open-market option should be replaced by mandatory exercise through the clearing house, which should offer a limited number of simple, standardised annuity contracts, plus a more tailored suite of enhanced annuities.
Proposals for the government include:
- Ideas to address Nest’s uncompetitive structure.
- Improving the effectiveness of the £30 billion spent annually on tax relief.
- Cash incentives (and a safe harbour) should be offered to employers that persuade employees to increase their pension contributions above Nest’s 4% of band earnings.
- Reinstatement of the 10p tax rebate on dividends and the replacement of the 25% tax-free concession on lump-sum withdrawals with a pre-annuitisation reward of 5% of pot assets.
- Simplification of the tax regime for investment products by ending the separate treatment for products with embedded life insurance.
Read the full report
Read more articles on the pensions industry
downtown Queenstown yesterday, reworking the resort back again right into a winter months wonderland [url=http://www.forkshoes.com/christian-louboutin-straratata-color-suede-sandal-in-rose-463-lady.html]straratata color suede sandal in rose[/url] straratata color suede sandal in rose . Vacation spot Queenstown CEO Graham Budd stated the excitement about city was electrical [url=http://www.forkshoes.com]christian louboutin shoes[/url] christian louboutin shoes . “It’s generally interesting when it snows downtown and in many cases superior when it is adopted by a bluebird day. I’m currently listening to reviews from your ski regions that nowadays may be the greatest day from the time [url=http://www.forkshoes.com/autumn-collection.html]discount christian louboutin shoes[/url] discount christian louboutin shoes . “Now’s an incredible time for you to reach Queenstown to get a limited split or vacation and get the most from the fantastic snow circumstances, [url=http://seanlockecreative.com]dresses for wedding guests[/url] dresses for wedding guests heat climate and choice of world-class encounters on present. ”
Studio Aecom has unveiled the initial renderings in the Rio de Janeiro Olympic Park. The London-based