UK - In anticipation of the Budget Statement next week, Tim Keogh, European Partner at Mercer Human Resource Consulting, has commented on quick wins for the Chancellor to improve UK pension provision.
He said: The Chancellor should arrange to significantly increase the contracting-out rebates to stem the tide of people now contracting back into the state pension scheme. If National Insurance contributions are to be changed anyway, as seems likely, the opportunity is there to improve the current unsatisfactory rebates at the same time.
By adjusting the rebates in the short-term, the Chancellor would demonstrate, in a concrete way, the government's claims that it wants to increase private sector pension provision. In the longer term, the government should grasp the nettle on pension reform and simplification, and review the entire role of state second pension provision.
By Luke Clancy
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