An increase in the state retirement age could cause a significant rise in group income protection premiums and may result in changes to scheme design and the level of protection employers can justify, according to several industry experts.
The comments come after an employee benefits survey by Origen revealed income protection (IP) as a benefit has been consistently decreasing for both large corporate companies and small medium enterprises (SMEs) since 2001. Glenn Laming, sales and marketing director in the group risk division at Legal & General, says the government’s proposals to increase the state retirement age from 2024 could lead to employers considering whether to simply extend group IP schemes to age 68 or whether to review their whole employee benefits package. He suggests employers may be reluctant to guarantee a...
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