Answer Happy

(a) In recent years the UK Government has expressed concern about the impact of growing life expectancy on the cost of providing State pension benefits. (1) Explain why improving life expectancy is a cause of concern. (ii) Discuss possible ways to raise awareness of the importance of saving, and encouraging people to save more, rather than expecting the Government to provide for them. (b) At the other extreme, the Government does not want individuals to put too much into their pension savings. Describe one way that the UK Government limits the amount which can be paid into or held in a UK pension scheme, and explain why they do this. (c) in the UK, workplace pension legislation requires that all eligible employees are automatically enrolled to their company pension scheme (1) What is meant by an eligible employee for this purpose? (ii) Discuss why some members may choose to opt-out of their pension scheme, And what might be the implications of that decision for the individual