Consultant Watson Wyatt says pension simplification and A-Day threaten possible tax rates up to 95% on parts of benefits, causing executives in the biggest UK firms to shift their retirement savings to UURBS.
Unfunded Unapproved Retirement Benefit Schemes have been picked by 39% of those surveyed by Watson Wyatt (WW) across 190 firms operating in the UK, including 37 of the FTSE 100, and 24 of the Fortune Global 500 list. About two-thirds of the firms say they have firm plans to offer cash or are at least considering cash allowances instead of pensions. ”[Simplification] will not limit the benefits that can be provided but will, instead limit the tax efficiency of pensions that exceed the new limits,” WW says. ”In extreme cases the tax rate on part of the benefits could be a staggering ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
