Pension contributions 'set to rise' under new regulations

07-08-2008

Pension contributions 'set to rise' under new regulations
The government plan to raise the minimum wage for 18 to 21-year olds could see employers having to contribute more to personal accounts, it has been warned.

In March, Labour pledged to raise the wage from £4.60 to £4.77 for those aged between 18 and 21, while 16 to 17 year olds will receive an hourly rate of £3.53.

According to advice from consultants Watson Wyatt, if the changes are implemented in October those who opened a personal account under the previous wage could be entitled to £1.10 more per week in employer contributions.

However, the popularity of pension schemes within the age bracket has been called into question.

Principal of Surrey-based IFA Christie Scott's Julie Hedge said: "There is not enough education around and it is possible that by their early 20s some young people may be paying off debts – in which case disposable income may be king."

In other news, the government abandoned a plan to top up the wages of service industry workers with non-cash tips.

Related categories: Insurance / Pensions.


Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

See also:

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure