Abstracts » Retail industry

Review is no free lunch for pensions industry

Article Abstract:

The UK government's Green Paper on pensions reform contains provisions designed to encourage the 5 million people who currently do not have a personal pension or access to an occupational scheme to invest in a 'stakeholder' pension. However, there are also measures intended to ensure that the private sector does not make excessive profits from these new pensions. Fees for the stakeholder pension will be limited to between 0.5% and 1%, and this means that pension providers will have to improve their efficiency if they are to make money.

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Pensions for low earners set to double

Article Abstract:

The UK government's Green Paper on pension reform includes plans to replace with state earnings-related pension scheme with a new 'state second pension.' This change, aimed at people who earn less than 9,000 pounds sterling a year, will benefit up to 5 million people. The government also hopes to prompt those earning between 9,000 pounds sterling and 18,500 pounds sterling to contribute to 'stakeholder pensions.' These will be supported by the government but mainly managed by the private sector.

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