So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money , says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download
In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.Download
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IFS identifies three potential drivers causing gender pensions gap
By Jean-Baptiste Andrieux 11
th May 2021 2:55 pm
The Institute for Fiscal Studies has identified three drivers that could be responsible for the gender pensions gap.
These are the variance in labour market experiences, contrast in saving rates and range of investment strategies according to a note on its website.
The think tank said it is important to understand these drivers before determining what policy intervention is necessary.
It added the drivers have changed over time with the increasing prevalence of career average earning schemes and the introduction of auto-enrolment.
This means the gaps in pension income today might reflect previous labour markets and pension arrangements.
May 10, 2021, 12:02 am
Pension savers should be nudged to increase their contributions at key life stages as they grow older, according to the Institute for Fiscal Studies (Jacob King/PA)
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Pension savers should be nudged to increase their contributions at key life stages as they grow older, such as when they get a pay rise, when their children leave home, or when they have paid off their mortgage, an economic think-tank has urged.
Savers should top up their pension pots later in life once their children have left home, says think tank
The Institute of Fiscal Studies says employee earnings increase over time with age and experience and therefore it makes more sense to increase contributions
It suggested Government revises pension schemes so employee contributions increase with their age and pay rises or when they clear debt such as mortgages
Research said typical graduate with two children should increase contributions from 5% of pay before children leave home to between 15 and 25 per cent after