Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • January 2013
01

Mid-Term Review reaffirms state pension reform pledge

Open-access content Monday 7th January 2013 — updated 12.59pm, Tuesday 5th May 2020

The coalition government remains committed to introducing a better, simple, single state pension and tying in the pension age to increases in longevity, Prime Minister David Cameron and Deputy Prime Minister Nick Clegg said today.

In a mid-term review detailing the government's progress since the coalition came to power in 2010 and its priorities between now and 2015, Cameron and Clegg said ensuring the pensions system is fair and affordable and provides dignity for people is a priority for government.

'That means working towards a better, simple, single state pension, protecting pensioners against erosions in the value of their pensions and introduce a new system which will encourage young people to put aside enough money for their old age,' they explained in The coalition: together in the national interest.

Specifically, the document repeats the commitment made in last year’s Budget to automatically increase the state pension age in line with future changes in life expectancy, something Cameron and Clegg said would keep the state pension system 'sustainable and affordable'.

Details of the reform plans, expected to involve a single state pension set at around £140 a week, were expected to be published last summer. An initial delay meant the plans were then expected to be published in the autumn, but in today's document Cameron and Clegg indicate an announcement on the reforms would be made 'in due course'.

The mid-term review also repeated the commitment made in last month’s Autumn Statement to increase the limit on drawdown pensions from 100% to 120% and to take forward legislation to put public sector pensions on a 'fair and affordable' footing.

Government will also continue to roll out pensions auto-enrolment; ensuring businesses with fewer than 50 employees are not required to begin auto-enrolling employees until 2015.

In a move aimed at providing 'dignity in old age', the review outlines the government's support for a cap on adult social care costs. The cap was one of the main recommendations of the Commission on Funding of Care and Support, chaired by economist Andrew Dilnot, which reported in July 2011.

Dilnot recommended that no-one should be required to spend more than £35,000 of their personal assets on care in their old age but, while today's document did not specify a cap figure, it is expected it will be set higher.

Former care services minister Paul Burstow last week urged government to set the cap at £50,000-60,000 in 2015 prices.

This article appeared in our January 2013 issue of The Actuary .
Click here to view this issue

You may also be interested in...

ta filler

Lack of insurance 'means Asian cyclones put strain on governments'

Low levels of insurance and reinsurance penetration in Southeast Asia and the South Pacific mean the extreme weather both regions experienced last month will place a major strain on the availability of government aid, Aon Benfield said yesterday.
Tuesday 8th January 2013
Open-access content
2

Met Office rain figures 'show flood insurance deal is vital'

Official figures, which revealed that 2012 was the second wettest year in the UK since records began, show how big a concern flood risk is for insurers, according to Deloitte.
Friday 4th January 2013
Open-access content
2

Bigger pension schemes spell better outcomes, regulator finds

Larger defined contribution pension schemes are significantly more likely to display the features needed to deliver the best retirement outcomes for savers than smaller schemes, according to research published by The Pensions Regulator today.
Thursday 3rd January 2013
Open-access content
ta filler

January reinsurance renewals 'stable', says Guy Carpenter

Annual reinsurance renewals on January 1 took place against a backdrop of stable pricing and ample dedicated reinsurance capital, Guy Carpenter said today.
Thursday 3rd January 2013
Open-access content
ta filler

Leaving RPI measure unchanged 'has added £20bn to pension deficits'

The surprise decision not to change how the Retail Price Index inflation measure is calculated could have added up to £20bn to the pension deficits of the UK's leading 350 companies, Mercer claimed yesterday.
Friday 18th January 2013
Open-access content

Solvency II long-term guarantee plans 'could hit annuities hard'

An impact study on how annuities are treated under Solvency II could lead to pension payouts being reduced by up to 20%, Deloitte claimed today.
Friday 25th January 2013
Open-access content

Latest from Health care

yf

Animal crossing: the threat of zoonotic diseases

Prachi Patkee and Adam Strange discuss what the rising threat of climate-driven communicable disease means for insurers
Wednesday 30th November 2022
Open-access content
hb

Boiling point: the effect of rising temperatures on future mortality

As quantifying climate risk exposure becomes increasingly important, Dan Gill, Rajinder Poonian and Alex Harding investigate the effect of rising temperatures on future mortality
Wednesday 2nd November 2022
Open-access content
vb

Interview: Professor Paul Dalziel on changing the focus of economies from growth to wellbeing

Paul Dalziel talks to Alex Martin about the true purpose of economics and the lessons we can draw from the 2019 New Zealand wellbeing budget
Wednesday 2nd November 2022
Open-access content

Latest from January 2013

Cash coins notes

City watchdog launches annuity market probe

The Financial Services Authority has begun investigating whether retirees are getting a fair deal when they use their pension pot to purchase an annuity.
Thursday 31st January 2013
Open-access content
ta filler

Audit committees have 'significant concerns' over risk, says KPMG

Nearly half of company audit committee members believe their employer's risk management programme needs substantial work, according to research published by KPMG yesterday.
Wednesday 30th January 2013
Open-access content
ta filler

Severe weather claims 'set to push up home insurance premiums'

Home insurance premiums remained largely unchanged in the last three months of 2012 but a flurry of claims related to recent severe weather will push up the cost of cover in the early part of this year, according to the AA.
Wednesday 30th January 2013
Open-access content

Latest from formbuilder_item_removed

2

Implementing IFRS 17 Discount Curves: Theoretical and Practical Challenges

The International Financial Reporting Standard (IFRS) 17 requires liability cash flows to be discounted at rates that reflect the characteristics of the cash flows, including their liquidity
Tuesday 3rd September 2019
Open-access content
2

Profit Emergence Under IFRS 9 and IFRS 17: The impact of choice of liability discount rate

With the IFRS 17 accounting standard, insurers need to understand the patterns of profit emergence that arise under the standard, and how current business and methodology decisions affect such patterns.
Wednesday 10th July 2019
Open-access content
2

Whitepaper: Aggregation and diversification of the IFRS 17 Risk Adjustment

This paper forms part of a series of high-level papers designed to provide an introduction to different features of the risk adjustment that should be considered in advance of implementation.
Tuesday 29th January 2019
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 01

Cash coins notes

City watchdog launches annuity market probe

The Financial Services Authority has begun investigating whether retirees are getting a fair deal when they use their pension pot to purchase an annuity.
Thursday 31st January 2013
Open-access content
ta filler

Audit committees have 'significant concerns' over risk, says KPMG

Nearly half of company audit committee members believe their employer's risk management programme needs substantial work, according to research published by KPMG yesterday.
Wednesday 30th January 2013
Open-access content
ta filler

Severe weather claims 'set to push up home insurance premiums'

Home insurance premiums remained largely unchanged in the last three months of 2012 but a flurry of claims related to recent severe weather will push up the cost of cover in the early part of this year, according to the AA.
Wednesday 30th January 2013
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

BPA Transition Manager

London, England / Edinburgh, Scotland
£45000 - £65000 per annum + market leading bonus and benefits
Reference
148878

London Market Pricing Contracts - Inside & Outside IR35

London (Central)
£1000 - £1300 per day
Reference
148877

SME Pricing Director

London (Central), London (Greater)
£225K + bonus + benefits
Reference
148872
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ