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Welfare Reform on the Web (June 2009): Pensions - UK

National pension scheme favours safety first investing

P. Skypala

Financial Times, May 7th 2009, p. 3

A discussion paper by the Personal Accounts Delivery Authority (PADA) about how the new National Pension Scheme will work reveals that employees will be automatically enrolled in the scheme when it is rolled out from 2011, with the right to opt out if they choose.

On the financial sustainability of earnings-related pension schemes with 'pay-as-you-go' financing and the role of government-indexed bonds

D. Robalino & A. Bodor

Journal of Pensions Economics & Finance, Vol. 8 2009, p. 153-187

This journal article explores the idea of an earnings-related pension system with reserves invested in indexed government bonds as a way of improving sustainability and security. It presents a model to show how GDP-indexed government bonds could be used to generate such a system without becoming a fiscal burden.

Opinions shift as longer working lives favoured

N. Cohen

Financial Times, May 26th 2009, p. 3

A Financial Times/Harris survey of 1126 adults in Britain conducted in early May has found sixty percent would support working beyond the current state pension age if it meant they get a better pension, and only thirteen percent are strongly opposed, suggesting public opinion is ready for a debate about Government pensions policy.

Pension funds to become landlords

D. Thomas and J. Pickard

Financial Times, May 1st 2009, p. 4

The Government initiative launched on 1 May by the Homes & Communities Agency aims to encourage pension funds and other investment groups to invest in new homes for private rental, either by funding new housebuilding or buying existing stock.

Pension plans fail to attract the lower-paid

N. Cohen

Financial Times, May 29th 2009, p. 3

The Office for National Statistics' Pensions Trends Report 2008 shows low-paid staff are much less likely to be members of an employer-sponsored pension scheme. Participation increases directly in proportion to income.

Pension tax change under fire

P. Davies

Financial Times, May 14th 2009, p. 2

Industry figures such as Tim Breedon, chief executive of Legal & General, have criticised the government's plans to cut tax relief on pensions, saying it may discourage saving.

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