You are here: Home - Uncategorized -

Low earners lose pension benefit

0
Written by:
04/09/2006

Millions of low earners who were meant to gain from the Government’s plan to restructure pensions will actually be left worse off, it has been claimed.

According analysis of the pensions White Paper by Standard Life, many lower earners will end up paying for pension benefit that they currently get from the State.

Half of all workers made to pay into the planned National Pension Saving Scheme (NPSS) will be effectively paying for benefits they already get for nothing.

Standard Life calculates that anyone over the age of 42 who earns £20,000 a year or less will be worse off when they are forced to pay 4% of their earnings into the NPSS, which the Government intends to introduce in 2012 following recommendations made in the Turner Report.

Standard Life says that 35 year olds earning £10,000 or less would also be worse off, and that lower earners would be better off paying into an ISA instead.

Related Posts

Tagged:

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Given the Brexit uncertainty, you may be looking to protect your pounds ahead of your next holiday. Here are five w… https://t.co/pjn2d3P41E
  • If you are concerned you may miss the 31 January HMRC deadline to file your tax return, here are five excuses that… https://t.co/BRoNxdNLXM
  • Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT me… https://t.co/bKospYHViX
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • RT @YourMoneyUK: Millions of Lloyds, Halifax and Bank of Scotland customers unable to make and receive payments in latest bank IT meltdown…
  • Make sure you're not paying more than you need to for your #energy. Check when your fixed deal ends and pop a note… https://t.co/OCfiU236o1

Read previous post:
Interest rates could rise again this week

Three members of the “shadow” monetary policy committee believe the Bank of England should raise the Ban Base Rate again...

Close