Managing Agencies
Ideological Burps

The UK Opts for compulsion

Not 'Britsaver' it seems. Money Marketing has this:

"The scheme would be comprised of 4 per cent employee contributions, including 1 per cent tax relief, and 3 per cent employer contributions.

Employees will be able to pay up to 16 per cent of their salaries into the scheme which is modelled on the Swedish scheme and US Thrift model."

The scheme also calls for increasing the retirement age to 68 (a sensible move). Fund managers and advisers are concerned, though, that effective limits on fees will lock them out of advice giving on pensions. This may leave people without advice, or push employers into providing advice of sorts.

One thought - is this the direction our own Kiwisaver is heading in?


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