What UK pension investors should look out for in 2016
By Kirsten Hastings, 17 Dec 15
After seismic changes to the pensions landscape, 2016 looks like being another year of upheaval. Here are the main things Hargreaves Lansdown think investors should look out for.
State pension reform
On 6th April the New State Pension launches. It is a welcome attempt to simplify the state pension and to distribute pay-outs more evenly however the DWP has got itself into a bit of a pickle over communicating these changes.
We’ll also see the end of contracting out for final salary pension schemes. This will result in increased NI contributions for scheme members and could precipitate another round of scheme restructuring or closures.
For employees this will mean an increase in their NI of 1.4% on incomes between £8,060 and £42,380, the equivalent of up to an extra £40 a month in tax. For employers the impact is even worse, with their NI costs going up by up to £97 a month for each scheme member.
Tags: Hargreaves Lansdown | Pension
