Property News · November 10, 2013

Widows and widowers' pensions could be axed under new proposals


Pension for surviving spouse and inflation linking threatened under plan to make final salary schemes affordableWidows and widowers could lose their entitlement to payouts from their spouse’s workplace pension under proposals outlined by the government to make final salary schemes more affordable for employers.Firms have been closing final salary schemes, also known as defined benefit schemes, in recent years as increased life expectancy, high inflation and poor investment performance makes it increasingly expensive to offer a guaranteed payout based on earnings. They have been replaced with defined contribution schemes, where the eventual payout is based on the performance of the underlying investments. These are typically the schemes chosen by employers when auto-enrolling staff into pensions. Continue reading…

Source : theguardian.com
Read more…Widows and widowers’ pensions could be axed under new proposals

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