Employee Benefits Updates | Pension Tax Changes 2015 | JLT

12 January 2015

Week ending 11 Jan: Tesco closes DB scheme| Employer AE enrolment survey| UK Consumer Price Statistics: A Review

Draft regulations for April 2015 tax changes published

Three sets of draft regulations have been published in connection with pension tax changes effective from 6 April 2015. They are:

  • The Registered Pension Schemes (Provision of Information) (Amendment) Regulations 2015. Draft legislation on changes to information requirements following changes in the Finance Act 2014 and the Taxation of Pensions Act 2014.
  • The Registered Pension Schemes (Transfer of Sums and Assets) (Amendment) Regulations 2015. Draft legislation on changes to annuity transfers following changes in the Taxation of Pensions Act 2014.
  • Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2015. Draft legislation on changes to overseas pension schemes following changes in the Taxation of Pensions Act 2014.

Pensioner income series 2012 to 2013

The key points from the latest pensioner income release are:

  • mean net income after housing costs has risen faster than before housing costs
  • pensioners’ mean net income has grown faster than incomes for the whole population over the last 14 years
  • median net income has grown faster than the mean net income for both before housing costs and after housing costs (pensioners in the middle of the income distribution have seen faster growth than those in the upper end of the distribution)

The full report is available at this UK Government web page.

State pension tool kit

State Pension examples, images and important facts have been published as part of new promotional material, along with new State Pension fact sheets.

Download the promotional material here.

Download the fact sheets here.

Over 7,500 people celebrated their 100th-plus birthdays in 2014 with a celebratory card from the Queen

The team at the Department for Work and Pensions (DWP) that traces those about to have their 100th, 105th and each birthday afterwards forwarded details of 7,517 people on to the Palace to issue a Centenarian card this year. More families and those living abroad may have approached the Palace directly.

The Office for National Statistics (ONS) estimates a total of 13,780 people are aged 100 or more in the UK – a rise of 70% in a decade. This compares with 8,060 centenarians in 2003.

Most recent estimates show of the 797,000 babies less than 1 year old living in the UK in 2013, 123,000 boys and 151,000 girls are expected to live until their 100th birthday in 2113.

Women reaching 100 this year will have started receiving the State Pension in 1974 – when the basic State Pension was £10 a week. Men reaching 100 in 2014 will have hit State Pension age in 1979 – when the basic State Pension was £23.30.

The basic State Pension now stands at £113.10 and will rise to £115.95 from April 2015.

Work preferences after 50

This policy brief highlights findings on a specific topic from the Eurofound’s European Quality of Life Survey (EQLS) that is of particular interest from a policy perspective. It brings results of the analysis of these data together with evidence from other Eurofound projects to formulate a number of policy pointers. The focus of this policy brief is the weekly working time preferences of people aged 50 and over.

Key findings are:

  • Employment rates among people aged 50+ have risen during the crisis. Nevertheless, with more people aged 50+ in the labour market (women in particular), unemployment rates have increased as well.
  • Among those aged 50+, employment rates have fallen most for low-skilled men.
  • Unemployed people of all ages want to work. However, unemployed people aged 50+ who can make ends meet would prefer a considerably shorter working week than those who have difficulties making ends meet – this difference is not found in younger age groups.
  • About half of all retirees who are not in employment say they would like to work, often part-time.
  • Proportions are higher for younger, highly educated and healthy retirees with work experience.
  • The desire to work among people aged 50+, both those in and out of employment, does not seem to be opposed by partners of people aged 50+.
  • In the EU28, 45% of people aged 50+ who are in employment would like to spend fewer hours at work.
  • More than half (56%) of volunteers who are not in paid employment are happy with the time they spend on volunteering, but would like to spend more time in paid work, while the 10% of employed retirees who would like to spend less time on volunteering would also like to spend, on average, 7 hours less in paid work.
  • One quarter of all people aged 50+ in employment would like to engage in more volunteering.
  • And they would also like to spend 5 fewer hours at work per week.
  • The gap between preferred working hours and actual working hours increases with age in all EU Member States.
  • People aged 65 and older who are in employment are particularly satisfied with their work, regardless of their income level.
  • Older people quite often provide care for elderly or disabled relatives: 7% of people aged 50+ provide care on a daily basis, compared with 5% of people under 50. When they are working and also caring every day for elderly or disabled people, 21% of them report more work–life balance problems compared with 16% of people who are looking after children or grandchildren.
  • Part-time work facilitates a better work–life balance – particularly, it seems, for people aged 50+.
  • Among people aged 50+, both in and out of employment, there is a preference for more part-time options.

Contact:

John W Wilson LLB(Hons) FPMI ACII, Head of Technical, JLT Benefit Solutions|

Email: john_wilson@jltgroup.com