Post on 09-Jan-2017
transcript
What if we put payroll in charge of pensions?here’s ten things that you could change!
Henry TapperPension PlayPen
2016 Payroll conference
Welcome.Before the session starts:• Think about the one thing that you think
needs to change in order to secure pensions as the key long term savings vehicle in the UK
• Jot it down• See where it comes in our countdown• Discuss at end if not in out list
The future of pensions – ten things that need to change!
Transparency
10
1. Transparency: we must know what we’re paying for our pension
“I think one of the things that saps people’s enthusiasm for saving in investment products is just a sense that they do not understand the fees and charges”.
David Cameron; PQT April 2016
Grey and Kelly v FCA (June 2016)
Value for money
109
2. Value for money: we need to know what and how to measure
Source; Clarius
Visibility
1098
3. Visibility: we should see what we have
Picture ; Moneyhub
Helpful administration
10987
4. Helpful administration: For auto-enrolment to workWorkplace Pensions have to work
Source ; Pension Playpen
Portability
109876
5. Portability: the pot should follow the member
Durability
1098765
6. Durability – our pensions should be safe
Safe robo-advice
10987654
7.Advice : are we ready for the robots?
Source ; Deloittes
Fair tax relief
109876543
Lies, damn lies and tax reliefs
Tax relief £24bn?
Investment relief £8bn?
Tax free lump sum
£3bn?
NI relief inc salary
sacrifice£15bn?
Most of it goes on already well off
With auto enrolment – why do we need tax
incentives?6 in 7 higher rate
taxpayers are basic rate in retirement
For public sector schemes – savings
go to Government??
New tapered AA and reduced LTA
will rebalance
Sort it out and then
leave it alone
Sustainable investment
1098765432
9. Stewardship: pension investment will have a social purpose
Source; Legal and General
Minimal government tinkering
10987654321
10. Less change; why trust must be restored
Ten things that need to change – Was yours on our list?
Transparency - we must know what we’re getting
VFM - we need to be able to measure it
Visibility – we must see what we’ve got
Helpful admin – making workplace pensions work
Portability - the pot should follow the member
Durability – our pensions should be safe!
Advice we trust – are we ready for the robots?
Fair tax relief - are we getting our ROI?
Sustainability - pension investment will get better stewardship
Less change - confidence has to be restored