On 6 March 2024, the Chancellor Jeremy Hunt, delivered his Spring Budget, setting out the Government’s key commitments and objectives for the UK economy.
While 2023’s Budget contained significant changes to pension taxation, there were no such announcements this year. Instead, the main takeaway for pension schemes was a push to deliver better value for savers and increase investment in the UK economy.
The Chancellor announced new powers for The Pensions Regulator and the Financial Conduct Authority to assess pension schemes on overall returns rather than just costs. There will also be new requirements for Defined Contribution and Local Government schemes to declare how much they have invested in UK shares.
The consultation on the idea of “pots for life” (pension accounts you can take with you when you move employer) will continue, as part of ongoing efforts to make pensions simpler and more flexible.
Many of the headlines picked up on the reduction of employee National Insurance contributions from 10% to 8% (on top of the reduction from 12% announced in the Autumn Statement). This cut represents a further attempt to ease the cost-of-living pressures many are still facing. It could also present an opportunity for people to put a little more aside for their future – perhaps by increasing contributions to Defined Contribution (DC) arrangements.
You now have more options available to you at retirement in terms of how you take your pension… view the video to find out more and to discuss any of this further, contact Friends Life using the details provided under the Contacts tab.
The Barber Judgment and the equal treatment of men and women
Generally speaking pension Plan’s used to have different retirement ages for Men and Women for example; 65 for men and 60 for women. This practice was challenged in the European Court of Justice in 1990 and it was ruled that Trustees must pay equal or comparable benefits to men and women from that date.
How this changed the Dun & Bradstreet Pension Plan
The Dun and Bradstreet Plan equalised normal retirement ages for men and women, before the Barber judgment, on 6 April 1988. Before this date men had a normal retirement age of 65 and women had a normal retirement age of 60.
Any person that joined the Plan after 6 April 1988 has a normal retirement age of 65 regardless of gender.
Any person that joined the Plan before 6 April 1988 has a normal retirement age of 60 for their service between 17 May 1990 to 31 March 2004; a normal retirement age of 65 for service after 31 March 2004; and a normal retirement age of 65 or 60 depending on gender for service before 17 May 1990.
