View more on these topics

Third of small firms will level down

One-third of smaller firms say they will reduce pension scheme benefits or close their schemes and move into personal accounts, according to research from the Association of Consulting Actuaries.

The ACA survey of 394 firms with 250 or fewer employees reveals 31 per cent say they will level down.

The survey shows small firms expect opt-out levels by individual employees to exceed 40 per cent, with affordability seen as the principal reason likely to drive the opt-out decision rather than means-testing.

The report also shows 55 per cent of firms say their current schemes fail the personal accounts exemption test.

ACA chairman Keith Barton says: “The benchmark set by the Government may weigh very heavily on smaller firms, particularly if economic conditions are not good at the time auto-enrolment and personal accounts are launched.”

Scottish Life head of pensions strategy Steve Bee says: “What the Government is trying to do is highly dangerous for existing schemes and pension saving in general. The result will be fewer people saving for a pension and those saving will probably be saving less because their employer’s contributions are being reduced. Millions of people working in the UK will live to regret these changes and live on to be poor in retirement.”


Positive charges

Pada has many criteria for personal account charges but they come down to fairness, attractiveness and commercial viability.

Dawnay Day secures MBO

Structured product provider Dawnay Day Quantum has completed a management buyout of the company’s entire shareholding from Dawnay Day International.

Insurers fear impact of EU pregnancy rule

The Association of British Insurers is warning that new European Union rules forcing providers to disregard pregnancy in the underwriting process could cause confusion and is calling for Treasury guidance.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm