Compulsory Pensions – the implications today of a policy for tomorrow

Posted by Vanessa Williams in Excello Law Blogs on Friday, November 16th, 2012

With the advent of compulsory pensions for employees it is somewhat ironic that the FSA recently confirmed that the projection rates used by pension companies to give investors an idea of what their pension will be worth when they retire must be significantly reduced. So, we are forcing people to invest in products that are dwindling in performance in the vague hope that this will somehow all work out all right by the time we actually retire. In the meantime, the burden on small businesses of the employer’s contribution makes it yet harder for the entrepreneur to create the new employment that the country so badly needs.

The burden on tax payers of an ageing population is undoubtedly an issue that needs to be addressed. However, we seem to be looking at it in isolation and not considering the wider implications today of a policy for tomorrow.

This article was written by Vanessa Williams
Vanessa Williams

Vanessa is a business lawyer with 20 years experience, 13 of which have been spent as a partner in leading London law firms. She has established and grown corporate/commercial departments and sat on the management board overseeing the running of the firm with particular responsibility for finance and HR strategy. You can email Vanessa at [email protected] or add her on

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