UK - The number of senior executives offered money purchase pensions has risen from 5% to 40% in the past four years, a study by Lane Clark & Peacock reveals.
And the consulting actuary’s survey shows that a third of companies which currently offer final salary pensions say they will offer a different form of pension to any new directors they hire.
It said this would either be a money purchase pension or a salary supplement instead of any pension at all.
LCP’s study also shows the average company contribution to money purchase arrangements is just under 20% of pensionable salary compared to 43% for final salary arrangements.
LCP partner Mark Jackson said: “While the vast majority of directors still receive excellent – normally final salary – pensions, that position is changing rapidly, with more companies either moving their directors to money purchase arrangements or not offering pensions at all.”
He added: “The government’s dramatic proposals for changes to the tax regime will accelerate the trend to simpler, more flexible, cost-transparent compensation packages for directors that may exclude pensions entirely.”
Proposed changes to The Pensions Regulator's (TPR) notifiable events framework so it can be more proactive when corporates make changes will create a very challenging workload, it has been said.
Aviva has created a new pension skill for Amazon Alexa that allows customers to find out how much they have saved towards their retirement.
PP has compiled a list of what to watch out for over the coming months.
The proposed cold-calling ban may be ineffective if a collaborative regulatory approach between the UK and the European Union (EU) is not maintained post-Brexit, the Pensions Management Institute (PMI) has warned.