If 2017 is anywhere near as turbulent as 2016 then we are in for a treat. Results of the EU referendum declared our tiny island will stand on its own two feet; the American president-elect is a billionaire tycoon / reality TV star; and Leicester City won the Premier League (no Arsenal jokes, please).
While I don’t have tarot cards to hand for 2017, it’s safe to say this will be a BIG year for pensions.
The 2017 review of auto-enrolment is likely to result in legislative changes. Will the £10,000 threshold move? Is saving 8% of banded earnings enough? Will there even be banded earnings this time next year?
Remember – your pension obligations do not ‘go away’ once auto-enrolment has been implemented. Indeed, your statutory requirements are on-going (assessments/letters/minimum contributions etc.) – make sure you don’t fall short of the mark; contact GJH Pensions for support.
Lifetime ISA (LISA)
Defined Benefit Green Paper
The Department for Work and Pensions will issue a green paper on the future of Defined Benefit Pension Schemes – we hope the recommendations will truly address the ongoing issue of defined benefit sustainability.
We saw master trust arrangements come under particular scrutiny in 2016. Many industry experts have raised questions about how master trusts are governed and regulated (they are not covered by the FCA, remember). The Government are likely to introduce tougher regulations sometime in 2017.
Does your organisation use a master trust, such as NEST or NOW Pensions? If so, are you aware of the concerns? Perhaps it’s time to review your pension provider (even if you don’t use a master trust), not least to benchmark value for money.
Although the above is a decent starter for 10, we haven’t even touched on the State Pension age review – which should be concluded by May 2017. Nor have we considered what the 2017 Budget may have in store. Yep, there’s a lot going on.
No doubt the pensions landscape will shift considerably in 2017, with employers needing to respond – the good news is, we’re here to support you every step of the way.
Gareth Hopkins is Director at GJH Pensions. To keep up to date with all the latest GJH Pensions news you can subscribe to our newsletter here or follow us via twitter @GJHPensions. GJH Pensions are an independent consultancy offering practical solutions to all things pensions. Our industry expertise, and personal approach, means we can truly understand the bespoke requirements for each client. Contact GJH Pensions today for a free consultation on 07446 148 537 or email firstname.lastname@example.org.