The 2012 Budget confirmed that existing proposals relating to state pensions
and state pension age would go ahead. It also included a mass of fine detail on
other issues with which the industry will need to get to grips.
- Single-tier state pensions to go
ahead The top rate of income tax is to be reduced from 50p to
45p from April 2013, so it will be more attractive to make pension contributions
in the current tax year for those affected.
Department for Work and Pensions plans
flat-rate state pension In a Green Paper, the Department for Work and
pensions has outlined two options for reform to deliver a simple, flat-rate
contributory state pension that lifts the majority of future pensioners above
the standard means-test. The more likely option will also see an end to
Pensions auto-enrolment: another review, more
proposals The Work and Pensions Committee's report on automatic enrolment
proposes that two major restrictions on the operation of Nest should be lifted
as a matter of urgency.