Pensions - Articles - Government mid-term review confirms pension reforms

 Glyn Bradley, Associate at Mercer commented:

 Prolonged uncertainty does nothing to encourage pension saving

 "The "mid - term review" reiterated the Government's long-trailed £140 per week flat rate state pension, but we are still awaiting the detail, nearly two years on from the green paper. The single tier pension is likely to be £155 by the time it happens but it's unlikely to make everyone better off at once. There is likely to be controversy as comparisons emerge between the flat rate and the higher pension earners might have accrued had the current system kept going unchanged for 40 years. Less well noticed - but of acute concern for the employers involved - is the fact that reforms are expected to take away the state subsidy for employers to continue offering high quality defined benefit schemes"