Pension savings statement meaning

In this issue: Automatic enrolment Investment Taxation Contracting-out Public sector pensions Daily and weekly news alerts Dates for your diary Trackers Automatic enrolment DWP publishes review of earnings trigger and qualifying earnings band for 2025/26 The Department for Work and Pensions (DWP) has released a review assessing the automatic enrolment (AE) thresholds—namely the earnings trigger and the qualifying earnings band—for the 2024 to 2025 financial year. In a written statement, the Minister for Pensions, Torsten Bell, emphasised that this year’s review primarily seeks to preserve the stability of automatic enrolment for both employers and individuals. The government also aimed to keep its framework enabling individuals to build pension savings while remaining affordable for employers and taxpayers. The review concludes that every AE threshold for 2025/26 will stay at the 2024/25 levels. The earnings trigger for automatic enrolment sets the point at which an eligible worker is put into a workplace pension...

Polling 1,000 adults on 29 January 2025 for retirement savings platform PensionBee, 11% reported feeling 'comfortable' with AI in the lead, yet they still resisted full automation and were not ready to cede all decision-making just yet. The research, highlighted on PensionBee’s blog on 12 February 2025, revealed strong support for a blended model of pension customer service, with 79% of participants favouring this option overall instead. Luis Mejia, PensionBee’s vice president of data, noted in a statement that the findings indicate pension savers regard AI as useful, but the technology is not yet capable of fully supplanting human know-how. Mejia added that savers want the best of both worlds: quicker service and round-the-clock availability, with reassurance from human oversight...

More than one in four adults are unsure who manages their pension, while two in three have never attempted to recover misplaced or overlooked pension pots. This comes even though the typical unclaimed pot is valued at £9,470, as reported by the Pensions Policy Institute in 2024. Mike Ambery, Standard Life's Retirement and Savings Director, cautioned in a statement that 'millions' of UK employees could miss out on retirement money after losing sight of their pension funds. With frequent career moves now commonplace, he added, it is all too simple for pots to be forgotten, or fall off the radar completely altogether...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

FORTHCOMING DEVELOPMENT : Under section 10 of the Finance Act 2022, the normal minimum pension age (NMPA) is set to rise from 55 to 57 with effect from 6 April 2028, excluding members of the public service schemes for firefighters, police and the armed forces. It also introduces a right for members of registered pension arrangements to access benefits before 57 where, on or before 4 November 2021, they already held an ‘unqualified right’ to do so, or were actively transferring to a scheme that, by that date, offered an unqualified right to a protected pension age below 57. To rely on this 2028 protection, the scheme’s rules must have, as at 11 February 2021, conferred an unqualified right to draw scheme benefits before age 57. For more detail, see Practice Note: Increasing the normal minimum pension age (NMPA) to 57—pensions impact...

Contracting-out From 6 April 2016, contracting-out for defined benefit (DB) schemes ends. The reforms had first been planned for April 2017; however, a written ministerial statement issued on 19 March 2013 accelerated implementation by twelve months. The measures below arise from the cessation of contracting-out for salary-related occupational pension schemes with effect from 6 April 2016. Legislative changes necessary to implement the abolition of DB contracting-out The legislative amendments required to deliver the abolition of DB contracting-out are being made through: the Pensions Act 2014 (PA 2014), s 24, Schs 13–14. PA 2014 received Royal Assent on 14 May 2014 and, among other matters: provides for the repeal, from 6 April 2016, of specified contracting-out provisions in the Pension Schemes Act 1993 (PSA 1993), and introduces a statutory power for employers to amend occupational scheme rules, without trustee consent, solely to reflect higher employer National Insurance costs arising from the abolition of DB contracting-out, by increasing employee...