No one wants to give up a lucrative defined benefit pension, but allowing continued accrual for older workers while younger workers get inadequate defined contribution stifles businesses and creates intergenerational inequality, writes Quantum Advisorys Phil Farrell.

Quantum Advisory's Phil Farrell argues that apathetic members are unlikely to reach the retirement they desire, even with the help of regulated financial advice.

Quantum Advisory’s Phil Farrell suggests the steps small employers can take to make auto-enrolment a smoother experience.

From the blog: The standard lifetime allowance is being reduced again, this time to £1m. That’s a reduction of 20 per cent from the current level of £1.25m and 44 per cent from the LTA’s peak level of £1.8m in April 2010.

So what does this further erosion of the LTA mean for pension schemes and trustees?

Trustees will not ordinarily know if their members are affected by the LTA, unless their pension accruals under the scheme exceed the limit.

A commonly overlooked issue is one of life assurance benefits provided through a scheme’s trust structure, written under a registered policy.

In the event of death, life assurance benefits insured and paid in this manner are assessable against the LTA.

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