As a chap of certain age, I lean towards leisure activities like walking up hills and mountains. I enjoy drinking proper beer from a cask, and watching pretty much any sport featuring England or GB (mostly rugby, but also cricket and even ‘chavball’). I also love a pleasantly spicy curry with friends (but never ever again a phall, as I’m no longer a student).
So I was in my element, as 11 chaps gathered in Wales to climb a challenging peak, watch the ‘Super Saturday’ climax of the Six Nations, drink cask ale and have a curry. This was, of course, with the aid of some planning by our leader (every group has one and ours has been the leader since the age of four when we met at infant school). Surely nothing could have blighted this being a most excellent weekend? Well, apart from the following:
Well, having pension benefits valued in excess of £1million is certainly a nice problem to have. It hugely exceeds the average defined contribution (DC) pension pot held in the UK. But there is also a personal taxation implication that mustn’t be ignored.
So what should he be doing now?
The real question here, is whether there is an employer education and engagement obligation in circumstances like this? My friend claims that his employer has never mentioned the possibility that he may breach the lifetime allowance. This may or may not be true. We know that not all engagement efforts work and not every employee reads all their pension communications (or any in many cases). But should it even be the employer’s problem?
My own view is simple – and unsurprising, given my chosen career. I believe that employers need to do more. These personal taxation challenges are becoming more and more frequent. Having your employees feeling well-educated and cared for financially in the workplace can only be a good thing. I am sure we can collectively lift the fog around this subject if we engage well and communicate more effectively.
This article was first published with REBA on 02 May 2017.