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Centre for Policy on Ageing | |
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Bridging the savings gap: an evaluation of voluntary and compulsory approaches to pension reform
— a research report by PricewaterhouseCoopers for the ABI | | Corporate Author | Association of British Insurers (ABI); PricewaterhouseCoopers |
| Publisher | Association of British Insurers (ABI), June 2005 |
| Pages | 72 pp |
| Source | ABI, 51 Gresham Street, London EC2Y 7HQ. www.abi.org.uk |
| Keywords | Pensions ; Savings ; Retirement policy. |
| Annotation | The Association of British Insurers (ABI) commissioned PricewaterhouseCoopers to evaluate the impact on savings behaviour and the public finances of six possible long-term pension reform options. Option 1 covers a range of reforms to the state pension system involving increasing the Basic State Pension to £120 per week. Option 2 suggests a single (30%) rate of tax relief on pension contributions. Option 3 would introduce matching government contributions at a 50% rate for private pension contributions in place of existing tax relief. Option 4 is "compulsion" with minimum pension contributions of 3% each for employees and employers. Option 5, "auto-enrolment" into company schemes for all employees, assumes that all employers offer a pension scheme and make a 3% contribution if employees did the same. Option 6, the Pension Contribution Tax Credit (PCTC), gives an additional national insurance (NI) rebate to employees who contribute at least 5% (3% for small firms) to pension schemes that cover at least two-thirds of their workforce. (RH). |
| Accession Number | CPA-050804202 B |
| Classmark | JJ: JDD: G5 |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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