Partner, Helen Ball commented: “Our survey asked attendees about the most important changes they’d like to see happen in 2025, and there were two clear frontrunners: 32% of respondents are hoping for improved retirement support and 32% want to see an increase in auto-enrolment contributions. We may see retirement support duties arrive via the Pension Schemes Bill later this year, but there remains considerable uncertainty about the timetable for auto-enrolment changes.
“There were mixed views about the Government’s approach to setting DC priorities - although 62% of respondents said the priorities “are clear, although there is a lot happening all at once”, another 31% found the direction unclear and remain uncertain about what might be coming next. With so much still to be decided and so many developments on the DC horizon, trustees and employers should monitor legal developments closely over the next few months, and check they have the resources to manage what may be coming down the track. The survey also revealed that a mere 4% of respondents currently feel clear about the scope of the Government’s proposals to apply IHT to certain wealth passed on through pension schemes. Of the remaining 96%, most respondents have concerns “to some extent” as to what the ‘life products’ exclusion will capture, as well as which benefits fall within scope. The two biggest concerns relate to increased administrative complexity, with the changes affecting day-to-day operations and increasing the risk of errors (cited by 36% of respondents) and potential delays in paying out death benefits (mentioned by around 20%). There will therefore be lots of interest in the output of the Government’s recent consultation process.
“Lack of clarity around the precise extent of the IHT proposals is clearly causing ongoing concern. Realistically, it may be some time before a clearer picture emerges, as the government takes time to digest the consultation responses. With potential administrative complexity adding to the unease, all eyes will be on the process which the Government ultimately lands on for accounting for and paying any IHT due on pensions benefits.”
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