September – Pensions (Extension of Automatic Enrolment) (No2) gets Royal Assent
“We are hopeful the auto-enrolment bill will get Royal assent this month. This will enable the widening of the scope of auto-enrolment to bring in those aged between 18 and 22, and make contributions based on the first £ of earnings – removing the salary offset of £6,240. This has the dual benefit of increased contributions from both employees and employers, and younger employees can start saving earlier which should lead to larger pension pots in later life.
“We are expecting that once the Bill is enacted, this will be swiftly followed by a consultation paper. This paper will set out implementation options for the enhancements, and is expected to be on a phased basis.”
From early September – Pensions Engagement Season
“Pensions can often seem daunting for those who don’t know where to start when thinking about planning for retirement, so it is important the industry engages with individuals in a clear and meaningful way. The pensions engagement season will run throughout September to November as a concerted initiative from the industry with support from the government to encourage people to engage with their pension.
“Pensions engagement season kicks off today with the annual Pensions Awareness week, run by the Pension Geeks. This is an opportunity to connect people with their pensions in a fun and energised way and help them to understand the basics.
“This is followed by the Pension Attention Campaign, led by the ABI and PLSA to boost pension awareness and engagement and includes National Pension Tracing Day (29th October). “
Early September – State pension triple lock earnings data published: 12 September
“The State Pension is increased each April in line with the triple lock – the highest of the annual increase in earnings, Inflation or 2.5%. The earnings and inflation index increases used are at different dates and published a month apart.
“The critical dates for the earnings data is May – July, published tomorrow (12th September), while the inflation (CPI) is the September index increase published on 12th October. More on this below. “
From mid-September – political party conference season
“The political parties conference season starts in mid-September, running to mid-October. This could be the last conference season before the next UK general election, expected to be late 2024, possibly early 2025. We expect to hear the political parties thrash out what could end up forming their manifestoes - such as the future of the State Pension triple lock and pension tax. More specifically, all eyes will be on the Labour Party’s intentions around reinstating the lifetime allowance, as they previously announced.”
October – September Inflation (Consumer Price Index) figure announced: 12 October
This determines next April’s uprating in benefits and the final number for uprating the State Pension
“In the past when inflation was relatively low and stable, it was not a major concern for most people. However, the ongoing cost-of-living crisis has changed this. Now all eyes will be on 12th October, when September’s inflation* (Consumer Prices Index) figure is published – as it will determine how much the State Pension will increase to in April next year.
“Due to soaring inflation, in April 2023, the state pension (along with certain other benefits) increased by 10.1% - the largest increase since the triple lock was introduced in 2010. This was in line with the September 2022 CPI increase, which was considerably higher than the earnings increase.
“The July Consumer Prices Index (CPI) level fell to 6.8%, but presently earnings growth is outpacing inflation. This means the State Pension is likely to increase by 8.2% in April. However, the final uprating amount will not be confirmed until the final inflation figure is released on 12th October.
“The Government is expected to announce the actual increase in the April 2023 State pension in November, possibly in the Autum Statement.”
November – King's Speech: 7 November
“The King’s first speech takes place on 7 November, which sets out the government's programme of legislation for the next session of Parliament.
“This is the chance for the government to outline new laws it wants to pass and set out its priorities. It’s likely to be the last King’s Speech before the next UK election. We’ll be on the lookout for a new Pensions Bill enabling the government's pension priorities such as introducing the value for money framework.”
November – Autumn Statement: 22 November
“Alongside addressing immediate priorities such as the ongoing cost-of-living crisis, the Budget may also give an indication of the government’s direction for tax and spending including the State pension uprating, as well as including further details on the Mansion House Reforms at in the build-up to the upcoming general election.”
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