EUROPE/UK - Overly-generous occupational pension schemes are encouraging workers to take early retirement, the Organisation for Economic Cooperation and Development says.
Its latest report – which sets out an agenda for dealing with problems such as labour shortages and ageing populations – states: “There are pathways to withdraw from the labour market at a relatively early age, in particular by using special early retirement schemes, unemployment-related transfer schemes, disability pensions and occupational pensions.”
The OECD said that while occupational pension schemes have been tightened, they still provide important fiscal incentives to retire before the statutory retirement age.
It calls for an increase in the standard retirement age but acknowledges that increasing the retirement age for women in the UK is a positive step.
Today’s average retirement age for UK workers of 62 is unchanged for the last 20 years, according to OECD research.
Auto-enrolment (AE) minimum contribution rates could rise to 12% by 2030, with a 50/50 split between employer and employee, the Pensions and Lifetime Savings Association (PLSA) says.
ITM director Maurice Titley looks at the next steps schemes should take on GMP equalisation.
Schemes are too focused on outcomes when assessing governance, when this may be a result of circumstance not skill. James Phillips looks at whether governance needs more of a framework.
The average pension scheme trustee chairperson earned just over £47,000 last year, with women being paid nearly £5,000 more than men, according to a report from Winmark and Barnett Waddingham.