Category Archives: Money Matters

Pension Schemes Bill entering final stages

Scrabble pieces spelling the work 'pension'

The Pension Schemes Bill has nearly completed its passage through Parliament, taking a step closer this week as Peers considered the Bill at its Report Stage in the Lords. As you’d expect, Age UK has taken a keen interest in this Bill, which is part of the Government’s wider ranging reforms to pensions announced by the Chancellor in the Budget last spring – the most significant changes to private pensions for over a generation.

From this April, there will be great flexibility, and greater choice for older people to access their retirement savings but with greater choice comes more responsibility, and potential complexity and risks, for older people making these important choices. Generally speaking, the pension reforms are a really welcome move giving those with pension savings approaching retirement freedom and greater options about how to access their money. However, with greater flexibility can also come greater risks for consumers. Continue reading

Pension reforms – opportunity and risk

 

Pound coins - Photo: Flickr user hitthatswitch

Photo credit: hitthatswitch, Flickr Creative Commons 

April 2015 will represent a landmark day for pensions, with an end to the requirement to use a pensions ‘pot’ to buy an annuity. For better or for worse, people at point of retirement will hold their own futures in their hands, with decisions taken at this time having implications that can be felt for many years to come.

Age UK has welcomed greater flexibility, but it’s clear that the rapid speed of change has led to significant challenges ahead for the government and the industry, as well as – most importantly – ordinary pension savers.

Disengaged savers

Age UK recently published an independently-written report, Dashboards and Jam-jars, which looked at some of the main issues facing people with average-sized pension pots. It highlighted some of the main problems that could arise – for example paying too much tax or running out of money – and suggests what can be done to mitigate these. Continue reading

Ending poverty and inequality in later life

Before getting help from Age UK County Durham, Lily, 88, was having to make painful sacrifices every day due to her limited income. This meant going to bed early just to stay warm because she couldn't afford to put the heating on.

Before getting help from Age UK County Durham, Lily, 88, was having to make painful sacrifices every day due to her limited income. This meant going to bed early just to stay warm because she couldn’t afford to put the heating on.

Last week we launched our End Pensioner Poverty campaign. Joanne Sawyer, Equality and Human Rights Policy Adviser, looks at how the issue of pensioner poverty relates to human rights in the UK.

Today in the UK, 1.6 million older people live in poverty, of whom 900,000 are living in severe poverty.  Whilst the number of pensioners living on a low income has fallen considerably in recent years, progress has now stalled and pensioner poverty levels have stayed the same.  In practice, this means constant financial worries for some older people and struggles to afford basic essentials like fresh food, warm clothes, and heating during the winter.

This unequal situation persists despite the right of everyone in the UK to an adequate standard of living which includes “adequate food, clothing and housing”, whatever their age and whatever their background.[1]  The General Assembly of the UN has stated that “older persons should have access to adequate food, water, shelter, clothing and health care through the provision of income, family and community support and self-help”.[2] Continue reading

Prime Minister discusses pension reforms at Age UK

David Cameron discusses pension reform

This week we have a blog from Caroline Abrahams, Age UK’s Charity Director.

It’s not every day that three Government Ministers come to our offices but that’s what happened earlier this week.

On Tuesday we were delighted to be able to offer around sixty older people the opportunity to talk to the Prime Minister, David Cameron, the Secretary of State for Work & Pensions, Iain Duncan Smith and the Pensions Minister, Steve Webb.

The event coincided with the publication of the Government’s Taxation of Pensions Bill, which will put into law the huge shake up of the pension system announced by the Chancellor in the Budget earlier this year.

A round table of ‘older’ Age UK staff also had the opportunity to discuss the pension reforms and other big issues for them with the Prime Minister before he joined the larger group of older people, Iain Duncan Smith and Steve Webb, where he briefly outlined the pension changes to come.

Among other things, the Prime Minister said “I think if you’ve worked hard and saved during your life you deserve responsibility in retirement about how you spend the money that you’ve worked so hard for and saved so hard for.” Continue reading