Pension saving limits to be scrapped
08 September 2014
The Government have announced that restrictions limiting the amount that British workers can save towards their pensions are now set to be scrapped, following a year of negotiation between ministers and the European Commission.
The DWP announcement says that:
“The move will benefit the staff of more than 8,900 employers who administer their pensions scheme through NEST – the National Employment Savings Trust – lifting an annual contribution limit of £4,600 which currently applies to them.
As well as this, pension savers within NEST are also set to gain new transfer rights, giving them the same opportunities to consolidate their pension savings as members of other schemes.
There are currently more than 1.5 million workers who save into workplace pensions through NEST – with that figure expected to rise to up to 4 million over the next 3 years. The majority of them are lower and moderate earners.”