- A-Day, on 6 April 2006, ushers in a new simplified pension regime, allowing contributions of up to £215,000 a year and a lifetime limit of £1.5m.
- Government’s White Paper on pension reform – ‘Security in Retirement’ – scopes out auto-enrolment. Personal accounts are unveiled, a prototype for auto-enrolment.
- DWP-commissioned review concludes that being out of work is bad for an individual’s health.
- UnumProvident’s Pay Direct GIP solution goes live, allowing the continuation of income benefit to a claimant without the usual requirement that the employee stays on a company’s payroll.
- L&G targets the iPod generation with a podcast telling its pension customers to contract back in to the state second pension.
- Government launches Action on Stigma, a three-year initiative to encourage employers to improve the way they deal with mental illness in the workplace.
- Economic secretary to the Treasury Ed Balls warns alternatively secured pension, the annuity alternative created for the UK’s 40,000 Plymouth Brethren, should not be used for non-religious reasons.
- TPR chief executive Tony Hobman warns that corporate transactions that transfer pension schemes to new vehicles, resulting in employers abandoning schemes without fully meeting their obligations to members, will not be tolerated.
- Treasury tests generic financial advice as Thoresen initiates review into a possible new classification.
“There is a real threat that savings levels will deteriorate prior to the introduction of personal accounts. This could be as a result of consumers misguidedly delaying investing in a pension on the basis that personal accounts represent a ‘better deal’. Alternatively, it could arise from current providers reassessing the att-ractiveness of the private pensions market given the high capital intensity and the risk of consumers subsequently migrating to personal accounts.” Scottish Widows head of pension market development Ian Naismith.