-- Auto Enrolment pension transfers allowed by DWP --
One year annuity deferral could take 24 years to recover
One year annuity deferral could take 24 years to recover
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It's time to scrap pensions in favour of savings
Pension Income reduced by Quantitative Easing
Pension Income reduced by Quantitative Easing
How to carry forward and Intervening tax years
How to carry forward and Intervening tax years
- One year annuity deferral could take 24 years to recover 2012.02.08 One year annuity deferral could take 24 years to recover
- It's time to scrap pensions in favour of savings 2012.02.08 It's time to scrap pensions in favour of savings
- Pension Income reduced by Quantitative Easing 2012.02.08 Pension Income reduced by Quantitative Easing
The government has announced plans to allow employees to keep their auto-enrolled pension savings in one place rather than accrue numerous small pots when they move jobs.
The department for work and pensions (DWP), outlined plans to allow transfers of small pension pots between auto-enrolment schemes.
This transfers would involve a central clearing house matching an employee's old auto-enrolment scheme with a new employer's scheme. The standards applied on auto-enrolment schemes should mean that employees could transfer savings simply and safely.
The paper suggested alternative options, including improving the current voluntary system and establishing an aggregator scheme.
It also outlined plans to abolish short-service refunds for direct contribution occupational schemes.
Steve Webb MP, minister of state for pensions, said: "These rules jeopardise pension savings for low to mediun earners and will not be part of the auto-enrolment world.
"We expect this rule change to happen as soon as 2014, provided we are able to implement an accompanying solution for small pot transfers at the same time."
Credencis think it is a good idea to keep pots in the least confusing format possible.
"Bearing in mind there will not be a lot of difference between the funds offered in auto-enrolment, it is a good move to help people retain their pots in an understandable format with the minimum of fuss."
Source: DWP
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Views expressed by our author, are the personal views of the author alone, and are not intended in anyway to be construed as advice.They should only be used as guidance and are not necessarily suited to the personal circumstances of every individual in the UK.If you are interested in seeking advice further then please contact Credencis direct.
