According to Paul Wilson, director at Xafinity Consulting, with the merging of the Basic State Pension, the State Second Pension Scheme and the potential merging of income tax and national insurance, the death knell for contracting out Defined Benefit schemes has been sounded.
He said: "Despite the usual rumours of the abolition of tax-free cash and the removal of higher tax rate relief, the publication of the budget has had little direct impact on pension arrangements.
"We have already had the removal of the default retirement age for business in the UK and the challenge will be to ensure pension arrangements are designed and can be flexible to move retirement age in line with State Pension Age"
Wilson stressed the importance of companies ensuring their employees are aware of the change and suitably prepared.
