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Sta travel falls into administration.

The travel company specialised in student travel, trips for young people, gap years and volunteer projects.

STA Travel Ltd had more than 50 shops in the UK and 500 jobs are at risk. It also traded as Bridge the World Travel.

The firm’s parent company, based in Switzerland, said the pandemic had “brought the travel industry to a standstill”.

Rory Boland, Which? travel editor, said: “Most STA Travel UK customers have found it impossible to get refunds in recent months for cancelled package holidays, often for very significant sums of money. Anyone with a booking, still waiting for a refund, or those holding a refund credit note, will be able to get their money back through the CAA’s ATOL scheme. Flight-only tickets booked with STA should still be valid. Passengers should contact their airline to check.

“The travel industry has endured a disastrous year, and many other companies will be on the brink of collapse. The government must urgently step in to provide much-needed support if this industry is to survive the next few months.”

What should STA Travel customers do?

ABTA has specific advice set out on its website for STA Travel customers. What customers should do next will depend on what holiday and travel arrangements they have booked and how they paid for them.

The majority of holidays sold by STA Travel were flight-inclusive packages and these are protected by the CAA’s ATOL scheme.

STA Travel also sold some packages which did not include flights and were protected by ABTA as well as holidays as an agent for other tour operators.

If you booked a package holiday through STA Travel and the holiday is provided by another tour operator, you’ll need to contact the tour operator named on your paperwork or ATOL Certificate. Your tour operator should be able to confirm that your booking will proceed as normal.

Your ATOL Certificate will say ’Package Sale’ in the bottom right hand corner, where an ATOL protected package has been booked through STA Travel with another tour operator.

If your booking included flights and was not with another tour operator, you will need to contact the CAA as your booking is protected by the CAA’s ATOL scheme. Your ATOL Certificate will say ’Package Sale’ in the bottom right hand corner.

If you booked a flight only with STA Travel with a scheduled airline, you will need to contact the airline about your booking. The airline is responsible for your booking and this should proceed as normal. Customers due a refund due to Covid-19 will need to make a claim with the airline concerned.

If you booked a non-flight package through a travel agent and not directly with STA Travel you should speak to your travel agent for advice.

If you booked a non-flight package holiday (for example, a cruise without flights) through STA Travel, it is protected by ABTA or by your credit or debit card issuer.

If you paid STA Travel directly using a debit or credit card you will need to submit your claim for a refund to your card issuer.

Customers that paid STA Travel by any other method or booked through a travel agent will need to submit a claim via ABTA . You will need to have all of your booking information and documents to hand when submitting your claim.

STA also operated as separate companies in a number of countries worldwide. Customers that booked with STA Travel businesses outside the UK will need to establish what protection may be available in the relevant jurisdiction.

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Can I get my pension if I live abroad? How to claim UK state pension and how much money do you have to save

How much you have to save, and how to claim your state pension when you are abroad.

Whiling away retirement in sunnier climes has long appealed to Britons, particularly when the cost of living abroad can mean pension savings go further than here at home.

Migration figures from the United Nations suggest more than a million British people live permanently in Europe, with around 250,000 of those over the age of retirement.

Which? estimates that to live comfortably in retirement takes an income of around £28,000 a year for a two-person household in the UK.

In Spain, the most popular retirement destination for pensioners moving from the UK, the cost of living at the same level of comfort is significantly lower, according to rental platform Housing Anywhere.

Lower housing costs, cheaper energy and utilities in the country mean income goes further, a big help for those who haven’t managed to save enough to maintain their lifestyles after stopping work.

But moving overseas has implications for your finances – from paying tax to claiming state pension, it can be complex to get to grips with.

Tom Selby, head of retirement policy at AJ Bell, says: “When someone chooses to switch jobs or move to a different country, or both, the decision is usually about much more than money and financial security.

“However, your overall remuneration will clearly impact on your lifestyle, so it’s important to carefully consider what you will be giving up and what you will be gaining from your new employer, both in the short-term and the long-term.”

Here’s what you need to know if you’re considering a move abroad.

Still working

Every scenario is personal when it comes to moving abroad, which is why getting independent financial advice from a specialist is vital before you commit.

Where you are in your career, the type of pension you have and the rules in the country you’re moving to all weigh on whether your finances will be in better or worse shape after the move.

Valentina Rocchi, a senior international benefits consultant at WTW, says: “The benefits accrued in the UK up to the time of leaving would generally be protected. However, they would have to remain in the plan (or equivalent plan) until retirement age.”

The duration of the transfer abroad is also important, she explains. In some cases if the transfer is for a short period of up to 2 years it may be possible to continue paying into the UK system.

“Pension regulation is complex and subject to change, so the recommendation would always be to do your due diligence and be prepared that regulations might change,” adds Ms Rocchi.

If you have saved into a workplace pension or self-invested personal pension you can leave it with your existing UK provider even if you become resident in another country.

Not all providers will make payments to a bank account held outside of the UK however, and those that do often impose hefty fees.

Receiving payments into a UK bank account is generally the most cost-effective way to claim your pension, in spite of transfer fees if you opt to move your savings to a local bank account.

There is also exchange rates to factor in when changing your pounds into the local currency. It’s worth looking into cheaper services specifically designed to keep costs down for those changing money regularly.

Claiming state pension when abroad

You can claim and receive a UK state pension while living overseas but pension credit stops when you move overseas permanently. This is a means-tested benefit, which can top up your weekly income.

When you move, you need to notify the International Pension Centre. If you’re from Northern Ireland, you need to notify the Northern Ireland Pension Centre.

You also need to contact HMRC to make sure you pay the right amount of tax.

Your state pension can be paid to a UK bank or building society account, or to an overseas account in the local currency but you’ll need the international bank account number and bank identification code numbers if you have an overseas account.

You’ll be paid in the local currency, again exposing your income to fluctuating exchange rates.

Just as in the UK, you can choose to delay or stop taking your state pension for a time and get extra State Pension.

If you move to a European Economic Area country on or after 1 January 2021, your right to some UK benefits might change.

Should you stay or should you go? British doctors, nurses, police, teachers and other public sector workers are being offered salaries up to three times their current incomes if they move to Australia. Last month a delegation of officials from Western Australia came to the UK promising key workers a better work life balance, a lower cost of living and 3,200 hours of sunshine a year. Amid an ongoing row over fair pay and regular strikes, the financial appeal of such an offer is clear. But given the generosity of public sector pensions is the upside in annual income worth giving up a guaranteed income later in life? Tom Selby, head of retirement policy at AJ Bell, says: “The most obvious thing to look at will be the salary of your prospective new job. “But for many workers – and particularly NHS staff – their extremely generous defined benefit pension scheme will need to be a central part of the consideration.” Defined benefit pensions, once a mainstay across both the public and private sectors, are now virtually extinct for anyone working for a company in the UK. Those paid by the state however are still honoured. Since 2015, NHS scheme members have benefitted from a ‘career average’ DB scheme, with each year of membership entitling the worker to 1/54 th of their career average salary. “That is a hugely valuable benefit, potentially worth hundreds of thousands of pounds, which needs to be factored in when comparing your remuneration in the UK with any package you are offered in another country,” warns Mr Selby. “NHS pensions are notoriously complex and there value will be different for different people, so taking professional, regulated financial advice to understand your options is essential.” While moving to Australia may sound appealing, Alice Guy, head of pensions and savings at interactive investor, says it’s a complex financial decision. “Your pay is only one small part of your finances: you also need to consider your pension and any extra costs living abroad,” she says. “Despite recent changes in the UK the NHS pension is extremely generous and as a defined benefit scheme, you’ll receive a guaranteed income in retirement, based on your salary and how long you’ve paid in.” By contrast, doctors in Australia are part of a much less generous superannuation scheme, where the employer contributes at least 9.5 per cent to a pension pot. “Check your potential contract for details,” says Ms Guy. “If you’re thinking of transferring your NHS pension to an overseas pension scheme, then it’s important to take financial advice as you could lose out in the long run.” In spite of promises to the contrary from Western Australia’s police and defence industry minister Paul Papalia that “our wages are higher and our cost of living lower” that’s up for debate, says Ms Guy. “The cost of living is generally more expensive in Australia,” she warns. “Housing costs are eye wateringly steep, especially in Sydney, and groceries also cost a lot more than in the UK.” Australians also pay for their healthcare through an extra tax called a medicare levy. Britons who choose stay in Australia after retiring could also end up out of pocket when it comes to the state pension. Though anyone who has worked in the UK and paid national insurance contributions is entitled to claim the state pension, those living abroad in some countries will have their payments frozen rather than seeing them rise in line with inflation as in Britain.

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Expat Guide To UK Pensions Abroad: Know Your Options

What you can do with your UK pensions and other income when you retire abroad: read about all available options.

Find The Best Rates For Your Health Insurance Abroad 

If you’re thinking about moving overseas in retirement, one of the most important considerations will be what to do with your UK pension. Find what options are available to you in our guide.

There are a lot of questions when it comes to your UK pension options when you retire abroad:

• Do you leave your pension in the UK?
• Do you take it abroad with you?
• How can you move your pension abroad?
• How will your pension income be taxed abroad?
• What about your state pension?
• And the most urgent one: how does Brexit affect your UK pension abroad?

This guide will help you understand what options you have regarding your UK pensions, their advantages and disadvantages, what happens to your state pension, and what you need to do to continue receiving your pension income without interruption when you move abroad.

Brexit impact on UK private pensions abroad

As financial services were left out of the Brexit deal, it might impact you directly if you are planning t retire to the EU.

Your pension payments might be affected by Brexit.

Not all UK pension providers can continue to pay your pension into an EU bank account. Before you move, check with your pension provider whether they can do it. 

If you are planning to keep your UK bank account and receive your pension into it, you need to ensure your bank will allow you to keep your UK account open when you become a EU resident. 

Possible options to resolve the problem:

• Have a Sterling account in your local EU bank and use a forex company to exchange your GBP pension payments into Euro;
• Use an e-money institution such as TransferWise, for example, which offers multicurrency accounts. You will have a sterling account into which your GBP pension payments will be paid which you can exchange into Euro and transfer into your Euro account all within one app;
• Depending on your personal circumstances there are other solutions that can be more beneficial for you than your existing arrangements. Consider speaking to a qualified financial advisor to make sure you have the most appropriate solution in place.

Your UK based financial advisor might not be able to advise on your investments when you become a resident in the EU.

If you move to the EU and still have UK investments, your UK-based financial advisor might still be able to work with your UK investments. However, the financial plans that have been established for you as a UK resident will not be ideal when you become a resident of another country. 

Being resident in the EU means you are subject to different taxation and legal regimes than those that apply in the UK. Your UK advisor might not have a sufficient understanding of the taxation and legal implications of any advice they give to a non-UK resident.

Moreover, if you have or are planning to have savings and investments with an EU-based institution, your UK-based advisor cannot instruct them regarding your investment products.

The best way to proceed is to revise your financial planning with the help of an EU regulated advisor. It can help you minimise taxes while changing residency and take the most tax-efficient decisions when settling down in your new country of residence.

Your UK based investments are not necessarily EU compliant now.

Various EU member states have given a grace period to allow EU residents to review their UK based investments and convert them if necessary into something that is more EU compliant.

After the grace period is over, you are still allowed to hold your investments in the UK, of course. What might happen is that your UK based investments will become tax-inefficient.

Option 1: Leave your pension in the UK

There are options as to what you can do with your pensions. These include an income drawdown plan, or an annuity, taking lump sums from your pension fund when you need them, etc.

If you have a UK pension and you’re over the age of 55, you can take your entire pension and do whatever you want with it. You could close your pension and take the whole amount as cash in one go if you wish.

Normally, for UK residents, the first 25% (quarter) will be tax-free and the rest will be taxed at your highest tax rate – by adding it to the rest of your income. 

If you leave your capital in the UK and move abroad, you will have to deal with regular currency transfers when moving money from your UK account into your overseas account. Make sure you don’t lose out. Shop around for the best options and compare the available rates. 

Retiring abroad means you become a tax resident of your new country of residence. In many cases, if you retire to an EEA country under the Double Taxation Agreements, your pension will be taxable in your new country of residence, not in the UK. 

To take advantage of the UK’s 25% tax-free lump sum rule, you would want to take this before moving abroad while you are still a UK tax resident. If not, you will be taxed according to local taxation rules in your new country of residence, where the 25% tax-free pension rule might not be applicable. 

The rest of your pension income will be taxed according to the taxation rules of your new country. 

Some countries, such as Portugal, Malta, Italy, and Cyprus , have very lenient tax policies when it comes to expats and their foreign-sourced income. Make sure you are in a good position to take advantage of this. 

Facts & figures:

In Portugal , you can pay a flat tax rate of 10% on your UK pension and other foreign income for the first 10 years of residing in the county under the Non-Habitual Regime, provided you are qualified. 

In Italy , you can pay 7% tax on your pension income for the first six years of residency.

In Malta , your UK pension income will be taxed at a rate of 15% under the Retirement Programme, provided you are qualified for it. You can find more information in our Living In Malta guide.

In Cyprus , you can opt for a flat tax rate of 5% on your pension income.

Research your country’s taxation rules thoroughly or, better, speak to a tax specialist. Depending on your destination there might be some really great opportunities for you that you don’t want to miss. 

A tax specialist can make sure you use all the available tax optimisation strategies to increase your after-tax income. 

With all the allowances, discounts and reductions available, a retired couple in France would not pay any income tax in 2019 if their net taxable income in 2018 had not gone over €27,974 (£25,000). Above that, it would be just 14 percent up to €73,000 (£65,500). 

In Cyprus , as a pensioner, you can alternate between paying a fixed tax rate of 5% a year on your pension income or choosing a tiered income tax . The year your retirement income exceeds €25,000 you will start saving money on tax by switching over to the flat tax rate of 5%. 

Option 2: Take your UK pension as cash and invest as you see fit in your new country of residence

Another option is to take your UK pension as cash and reinvest it into a tax-efficient, compliant arrangement in your new country of residence. 

This might be a good choice if you are an experienced investor and understand what you are doing. However, you might want to take independent financial advice to make sure you invest in products that best meet your individual needs.

There are many factors involved, including your financial goals, the size of your pension, your new country of residence’s taxation rules, available investment products, your appetite for risk, etc. 

All these need to be taken into consideration to make sure your retirement is safe and secure when it comes to money. A regulated financial adviser can help you with your financial goals and investment options.

In France , lump sums from pensions are not taxed at marginal rates. Instead, they are only subject to a 7.5% income tax charge, no matter how big the withdrawal. 

This means you can theoretically take your whole pension, pay 7.5% tax on it and reinvest the rest appropriately. However, to qualify you would have to establish tax residency in France before taking your lump sum.

Option 3: Transfer your UK pension overseas

There is an option to transfer your UK pensions abroad into a QROPS (Qualifying Recognised Overseas Pension Scheme) or ROPS as it is called now. 

ROPS is a pension scheme specifically for UK citizens who no longer live in the UK.

It stands for Qualifying Recognised Overseas Pension Scheme. However, the HMRC insisted on dropping the word “qualifying” from the name. So strictly speaking it is now the Recognised Overseas Pension Scheme (ROPS), although the abbreviation QROPS is still widely used.

The potential advantages of transferring your UK pension overseas

If you are retiring abroad, you could potentially benefit from transferring your pension into a ROPS. The advantages of this include the following:

• You may want your pension to be in your chosen country so you are not receiving income in sterling and spending in a different currency, avoiding exchange rate fluctuation.
• You may also find it easier to keep track of tax and regulation changes if they happen in the country where you reside.
• You can often access offshore investments and savings that could deliver better returns.
• You can have a tax-free lump sum of up to 30% if you have been abroad for 5 years or longer.
• You can potentially get access to onshore/offshore funds and the highest fixed deposit rates.
• You may be able to take an income from your pension in a more tax-efficient way.
• You can potentially protect yourself from Lifetime Allowance tax, which you have to pay when your UK pensions are worth more than £1,073,100. Once transferred, your pension pots can grow without risking further LTA tax. 
• You can potentially protect your estate by inheritance tax planning, and pass on your wealth to your family with less of a tax burden.

The above benefits of QROPS are theoretical. To understand whether you can individually benefit from them, you need to take into consideration your personal circumstances: the size of your pension and investments, where you want to transfer your pension, which county you are moving to, etc. 

You can only transfer your pension if you use qualified and regulated financial services. You should always take fully regulated financial advice before transferring to a QROPS. The advice must include both the potential benefits and losses of transferring your pension and enable you to consider ALL the available options!

If you retire to France and reinvest your pension into a suitable assurance-vie – a specialised form of life assurance where the underlying investments attract no tax in France – this may be more beneficial than a QROPS.

The ROPS pension option might not be suitable for everyone. Also, a pension provider needs to comply with strict regulations to be qualified as ROPS.

As of 9th March 2017, transfers to ROPS are subjected to a 25% tax charge unless certain conditions apply. To avoid the 25% tax, the individual and the ROPS must be in the same country after the transfer, or the ROPS must be in one EEA country and the individual in another EEA country after the transfer.

If the ROPS is an occupational pension sponsored by the individual’s employer, the 25% tax charge doesn’t apply either.

Depending on your personal circumstances and whether you comply with the conditions stated above, ROPS might be a perfect option for you. To understand whether this is the case and whether you can benefit from transferring your pension to a ROPS, seek qualified advice.

Having your UK state pension paid abroad

If you are eligible for a UK state pension, it will be paid to you no matter where in the world you choose to live. 

Brexit impact on state pensions paid overseas

If you’re entitled to a UK state pension and retired abroad (as currently over 220,000 Britons are) or are planning to retire overseas, – you will get your state pension paid just as British residents do.

The annual increase in the UK state pensions paid abroad

The annual inflation-linked increase depends on the country you are retiring to.

If you retire to one of the EEA countries, Gibraltar or Switzerland, your pension will be annually indexed in line with inflation, which means you will get a year-on-year pension increase.

Under the terms of the Brexit deal, if you are living in one of those counties and are eligible for a UK state pension, you will continue getting your pension annual increase.

State pensions will continue to be updated if you live in one of the countries that have bilateral agreements with the UK to protect their citizens’ social security rights: Barbados, Bermuda, Bosnia-Herzegovina, Jersey, Guernsey, the Isle of Man, Israel, Jamaica, Kosovo, Macedonia, Mauritius, Montenegro, the Philippines, Serbia, Turkey, and the USA.

Those who are retired or planning to retire to a country not listed above will get their state pensions paid, but the level would be frozen.

Receiving your UK state pension abroad

Once you qualify for the UK state pension, you can claim it no matter where you live. The money can be paid into a UK bank or directly into an overseas account in the local currency, cutting out transfer fees and bank charges.

You can choose to be paid every four or 13 weeks, but if your State Pension is under £5 a week, you’ll be paid once a year in December.

If you opt for a local bank, you will receive the pension in a local currency, so the amount will vary according to the exchange rates.

Making your pension last and deliver the lifestyle you want in retirement

Planning your money management in retirement isn’t an easy task. There are many options available for investing your savings. There’s no doubt that when it comes to retirement, we all want the best income and investment solutions for our hard-earned pensions.

Yes, pension freedom means you can withdraw or transfer your pension. However, it’s not always the best solution for you. It depends on your future plans, the size of your pension pot, your country of residence, and many other factors.  

What you need in the first place is a reliable plan to fund your long-term future that matches your personal circumstances and goals. 

Beware of pension scams.  Make sure you get advice from a professional and reputable international financial advisor.

Your advisor should always consider your personal needs, objectives, personal circumstances and risk appetite to find the best solution for you and your family. Getting it wrong could have serious and unexpected consequences. 

You might find useful:

• How To Access Best Quality Affordable Healthcare When You Move Abroad – how to apply for an EHIC and S1 form and what you need them for;
• Banking, Saving, & Investments Abroad – a simple guide to your bank accounts and investment options when you become an expat;
• Offshore Portfolio Bonds – The Tax Advantages Explained
• Visit our homepage for a comprehensive range of Living Abroad guides.

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Statement of Investment Principles

Travel automation services limited retirement benefits scheme.

Statement of Investment Principles – January 2024

Introduction

The Trustees of the Travel Automation Services Limited Retirement Benefits Scheme (“the Scheme”), have drawn up this Statement of Investment Principles (“the Statement”) to comply with the requirements of the Pensions Act 1995, the Pensions Act 2004, the Occupational Pension Schemes (Investment) Regulations 2005 and the Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2018 and 2019. The Statement is intended to confirm the investment principles that govern decisions about the Scheme’s investments. In preparing this Statement the Trustees have consulted Travelport International Limited (the ‘Employer’) on the Trustees’ investment principles.

The Trustees make all major strategic decisions involving the Scheme’s assets, including, but not limited to, the Scheme’s asset allocation and the appointment and termination of investment managers. The process for making investment decisions is as follows:

• Identify appropriate investment objectives;
• Agree the level of risk consistent with meeting the objectives; and
• Implement an investment strategy and investment manager structure in line with the level of risk and objectives agreed.

When making such decisions, and when appropriate, the Trustees take advice. The Trustees’ investment consultants, Capita Pension Solutions Limited (“Capita”), are qualified by their ability in and practical experience of financial matters, and have the appropriate knowledge, qualifications, and experience to provide such advice. Capita is authorised under the Financial Services and Markets Act 2000 to provide regulated investment advice to the Trustees.

Investment Objectives

The Trustees are required to invest the Scheme’s assets in the best interest of members, and their main objectives with regard to investment policy are:

• To achieve, over the long term, a return on the Scheme’s assets which is sufficient in conjunction with any contributions paid to pay all members’ benefits in full;
• To ensure that sufficiently liquid assets are available to meet benefit payments as they fall due; and
• To consider the interests of the Employer in relation to the size and volatility of the Employer’s contribution requirements.

While certain steps have been taken to increase levels of hedging the Trustees understand, following discussions with the Employer, that the Employer is willing to accept a degree of volatility in the Employer’s contribution requirements in order to aim to reduce the long-term cost of providing the Scheme’s benefits.

Risk Management and Measurement

The Trustees are aware of and pay close attention to a range of risks inherent in investing the assets of the Scheme. The Trustees believe that the investment strategy provides for adequate diversification both within and across different asset classes. The Trustees further believe that the current investment strategy is appropriate given the Scheme’s liability profile, contribution schedule and Employer covenant. The Trustees’ policy on risk management is as follows:

• The primary investment risk faced by the Scheme arises as a result of a mismatch between the Scheme’s assets and its liabilities. The Trustees’ principal focus in setting investment strategy is therefore taking into account the nature and duration of the Scheme’s liabilities.
• The Trustees recognise that whilst increasing risk can potentially increase long-term returns, it can also increase the short-term volatility of the Scheme’s funding position. The Trustees have taken advice on the matter and (in light of the objectives noted previously) considered the implications of adopting different levels of risk.
• The Trustees recognise the risks that may arise from the lack of diversification of investments. Subject to managing the risk from a mismatch of assets and liabilities, the Trustees aim to ensure the asset allocation strategy in place results in an adequately diversified portfolio. Due to the size of the Scheme’s assets and recognising the need to diversify, investment exposure is obtained via pooled vehicles.
• The documents governing the managers’ appointment include a number of guidelines which, among other things, are designed to ensure that only suitable investments are held by the Scheme, consistent with the investment strategy and policies.
• The Trustees recognise that, where appropriate, the use of active management involves a risk that the assets do not achieve the expected return. However, they believe this risk can be outweighed by the potential gains from successful active management, in particular in regions or asset classes where this potential is greater than others. Therefore, the Scheme’s assets are managed through a mixture of active and passive management which may be adjusted from time to time.
• The safe custody of the Scheme’s assets is delegated to professional custodians via the use of pooled vehicles.

Should there be a material change in the Scheme’s circumstances, the Trustees will review whether the current risk profile remains appropriate.

Environmental, Social and Governance (“ESG”) Considerations

The Trustees believe that their main duty, reflected in their investment objectives, is to protect the financial interests of the Scheme’s members. The Trustees believe that ESG considerations (including but not limited to climate change) and stewardship in the selection, retention and realisation of their investments is an integral part of this duty and can contribute to the generation of good investment returns. Legislation requires that the Trustees form a view of the length of time that they consider is needed for the funding of future benefits by the investments of the Scheme. The Trustees recognise that this is a DB scheme closed to new entrants with an ageing membership. Nevertheless, the Trustees believe that an appropriate time horizon for the Scheme could still be over 20 years, which gives plenty of scope for ESG considerations to be financially material.

The Trustees have elected to invest predominantly in pooled funds and it is difficult, therefore, to directly influence the ESG policies, including the day-to-day application of voting rights, of the funds in which they invest (especially where assets are managed passively).

However, the Trustees will consider the manager policies in all future selections and will continue to review their existing manager policies at least annually. The Trustees will also seek to understand what other options might be available via their managers and in the wider market. In cases where they are dissatisfied with a manager’s approach, they will take this into account when reviewing them. They are also keen that all their managers are signatories of the UN Principles of Responsible Investment, which is currently the case.

The Trustees believe that stewardship is important, through the exercising of rights (including voting rights) attaching to investments. The Trustees are keen that their managers can explain when, and by what practical methods, the managers monitor and engage with relevant persons about relevant matters in this area. They will be liaising with their managers (including their passive managers) to obtain details of the voting behaviour (including the most significant votes cast on the Trustees’ behalf). The Trustees are also keen that their managers are signatories of the UK Stewardship Code. This is currently the case.

The Trustees are aware that ESG and stewardship considerations involve an ongoing process of education for themselves and engagement with their investment managers. To that end they dedicate time to the discussion of this topic and intend to review and renew their approach periodically with the help of their investment consultants, where required. Consequently, the Trustees expect the Scheme’s investment managers to have effective ESG policies (including the application of voting rights) in place and look to discuss the investment managers’ ESG policies with them when the managers attend Trustee meetings.

The Trustees will monitor the voting being carried out by investment managers and custodians on their behalf. They will do this by receiving reports from their investment managers which should include details of any significant votes cast and proxy services that have been used.

Non-financial matters, including members’ views are not taken into account.

The Trustees wish to encourage best practice in terms of activism. The Trustees accept that by using pooled investment vehicles the day-to-day application of voting rights will be carried out by the investment managers. Consequently, the Trustees expect the Scheme’s investment managers to adopt a voting policy that is in accordance with best industry practice.

Investment Strategy

Given their investment objectives and regular investment strategy reviews, the Trustees have agreed to the strategic asset allocation detailed in the table below – further details are shown in the Appendix. The Trustees believe that the investment risk arising from the investment strategy is consistent with the overall agreed level of risk.

The LDI funds employ leverage (i.e. the level of protection provided against changes in longer-term interest rates/inflation expectations is greater than the amount invested). The Trustees will continue to assess the appropriateness of the leverage of the LDI funds on advice from the Investment Consultants, and subject to stress testing . Should the leverage within one of the LDI funds deviate substantially from the target leverage level, Legal and General Investment Management (‘LGIM’) will rebalance the LDI fund back to the target leverage level. These LDI leverage rebalancing events could result in money being requested or released from the LDI funds . Following advice from their Investment Consultants, the Trustees established a collateral waterfall for these events (dated December 2022). This was reviewed by the Investment Consultant who confirmed it remains fit for purpose in the event of any changes to the LDI funds at the most recent review (June 2023). The Trustees may decide to change this policy from time-to-time, subject to receiving the necessary advice from their investment consultant.

The Fixed LDI fund provides protection against changes in longer-term interest rates. The Real LDI fund provides protection against changes in both longer-term interest rates and longer-term inflation expectations. The strategic asset allocation hedges approximately 100% of funded liabilities, broadly removing volatility that would otherwise occur in the funding level from time to time as a result of interest rate and inflation movements.

The Trustees will monitor the Scheme’s actual asset allocation at least every six months and will decide if any changes are required, such as redirecting cash flows or a switch of assets. The Trustees will take into account advice from their investment consultant prior to making any decision. Further details of the investment funds held can be found in the Appendix.

Expected Return

The Trustees expect the return on assets to be consistent with the investment objectives and investment strategy outlined above.

The Trustees expect the Scheme’s assets to generate a return, over the long term, of circa 1.0 % per annum, net of expenses, above a portfolio of long-dated UK Government bonds – which are considered to change in value in a similar way to the Scheme’s ‘self-sufficiency’ liability value. This return is a “best estimate” of future returns that has been arrived at given the Scheme’s current strategic asset allocation and in light of advice from the investment consultant.

The Trustees recognise that, over the short-term, actual performance may deviate from this long-term expectation and be either higher or lower than the long-term “best estimate” expectations. This “best estimate” should be higher than the assumption used for funding purposes for the actuarial valuation of the Scheme’s technical provisions. For funding purposes, a prudent estimate of returns is used, as agreed by the Trustees on the basis of advice from the Scheme Actuary.

Platform Provider

The Trustees have appointed Legal & General Investment Management Ltd (‘LGIM’) Investment Platform (“the Platform Provider‟) to administer all the assets of the Scheme. The Platform Provider is regulated under the Financial Services and Markets Act 2000. All decisions about the day-to-day management of the assets, including the realisation of investments, have been delegated to the Platform Provider via a written agreement.

Investment Mandates

The Trustees have selected BlackRock Investment Management (UK) Limited (‘BlackRock’), Insight Investment Management Limited (‘Insight’), and LGIM as the appointed investment managers (“the Investment Managers‟) to manage the assets of the Scheme via a single policy with the Platform Provider. The investment managers are themselves regulated under the Financial Services and Markets Act 2000.

The Trustees have rolling contracts with their investment managers.

The Trustees monitor the performance of their investment managers on a quarterly basis. This monitoring is contained in a report provided by its advisers.

The Trustees have set performance objectives, including time periods, consistent with the investment strategy set out in this statement.

Investment Manager Remuneration

The Trustees monitor the remuneration, including incentives, that are paid to their investment managers and how they reward their key staff who manage client funds, along with how they pay. incentivise or motivate employees who manage client funds.

As part of the monitoring that the Trustees carry out on a regular basis, they should ensure that this policy is in line with their investment strategy.

Investment Manager Philosophy and Engagement

The Trustees monitor the investment managers’ process for assessing the businesses they invest in, and whether business performance over the medium to long-term involves a review that extends beyond mainly accountancy measures. The Trustees consider if the investment managers are incentivised to make decisions on a short-term basis or on a medium to long-term basis and whether this coincides with the business assessments being made. The Trustees are conscious of whether the investment managers are incentivised by the agreement with the Trustees to engage with the investee business and to what extent any engagement focuses on improving medium to long-term performance.

Investment Manager Portfolio Costs

The Trustees will monitor costs of buying, selling, lending and borrowing investments and it will look to monitor the costs breakdown annually, as long as the investment managers provides these costs using the Cost Transparency Initiative template. The Trustees will also ensure that, where appropriate, their investment managers monitor the frequency of transactions and portfolio turnover. If there are any targets, then the Trustees will monitor compliance with these targets.

Additional Voluntary Contributions

Some members have obtained further benefits from having paid Additional Voluntary Contributions (AVCs) into the Scheme either with facilities through Aegon or Utmost Life and Pensions. The liabilities in respect of these AVC funds are equal to the value of the investments bought by the contributions. Since AVCs are defined contribution in nature, the Trustees review the choice of investments on a periodic basis in order to meet the requirements of the Pension Regulator’s DC Code of Practice 13 and related guidance, which came into effect in November 2013. The most recent review was carried out in 2022.

Compliance with Myners’ Principles

In October 2008 the Government published the results of its consultation on revisions to the Myners’ principles in response to recommendations made by the National Association of Pension Funds (NAPF) in 2007. This takes the form of six higher-level principles, supported by best practice guidance and trustee tools that can be used to assess compliance.

The Trustees believe that they comply with the spirit of the Myners’ Principles. There may be some instances of deviation from the published ‘Best Practice Guidance’ on the Principles where the Trustees believe this to be justified.

Employer-Related Investments

The Trustees’ policy is not to hold any direct employer-related investments as defined in the Pensions Act 1995, the Pensions Act 2004 and the Occupational Pension Schemes (Investment) Regulations 2005.

Fee Structures

The Platform Provider and the Investment Managers are paid a management charge on the basis of the assets under management. No additional performance fees are payable.

The investment consultant is paid on a time-cost or fixed fee basis, as agreed between the Trustees and the investment consultant from time-to-time.

Review of this Statement

The Trustees will review this Statement at least once every three years and without delay after any significant change in investment policy. Any change to this Statement will only be made after having obtained and considered the written advice of someone whom the Trustees reasonably believe to be qualified by their ability in and practical experience of financial matters and to have the appropriate knowledge and experience of the management of pension scheme investments.

Signed on behalf of the Trustees of the Travel Automation Services Limited Retirement Benefits Scheme

4 November 2022

New travel insurance offer for members

The new travel arrangement with CSIS is now available for CSPA members.

The offer includes both annual policies or cover for single trips (subject to scheme acceptance criteria) with a variety of policy limits and benefits being made available.

Policies purchased online are available for CSPA members up to age 85. Members will need to call the CSIS if anyone to be covered under a new policy is aged 86-91 and they will be provided with a quotation.

Members are also advised to call the CSIS for a quotation if they have multiple or serious medical conditions, as they may be able to obtain a quotation for them that is not available online.

Travel Insurance should be purchased as soon as you book your trip, as it will provide cancellation cover & certain other benefits from the date the policy starts. You can take out the policies at any time during the year, they will be an individual policy for you (and your spouse / partner if required) and there will not be a common renewal date as members may have had under previous arrangements.

The CSIS also have a wide selection of other products available, including Motor and Home Insurance. CSPA members should log into the Members Area of the CSPA website for further information and contact details.

Are you a current or retired Civil Servant? Become a member of the CSPA to support our campaigning, and gain access to a wide range of benefits.

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• Pensions and ageing society
• Workplace Pensions and Automatic Enrolment: employers’ perspectives 2022
• Department for Work & Pensions

Summary: Workplace pensions and Automatic Enrolment: employers’ perspectives 2022

Updated 27 October 2022

© Crown copyright 2022

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] .

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/workplace-pensions-and-automatic-enrolment-employers-perspectives-2022/summary-workplace-pensions-and-automatic-enrolment-employers-perspectives-2022

Automatic Enrolment ( AE ) was introduced under the Pensions Act 2008, stipulating every employer in the UK must automatically enrol certain employees, currently those aged between 22 and State Pension age ( SPa ) and earning over £10,000 a year, into a workplace pension scheme and contribute towards it. Employees then have the option to leave the scheme.

AE was introduced over a 5-and-a-half-year period, from October 2012 to February 2018. Between October 2012 and June 2015, AE became mandatory for large and medium sized employers. Between June 2015 and May 2017, this was extended to small and micro employers.

Once eligible employees are enrolled, employers must contribute to the pension savings. Until 5 April 2018, the minimum contribution rate was set at 2% of the qualifying earnings [footnote 1] of each automatically enrolled employee, with at least 1% provided by the employer.

The rates increased to a total of 5% in April 2018, with at least 2% contributed by the employer. On 6 April 2019, contribution rates rose to a total of 8%, with at least 3% contributed by the employer.

The primary objectives of this research were to understand employers’ views and behaviours regarding AE , to explore the role employers play in supporting their employees to save into their pension or emergency savings, to understand how employers view pensions within their overall benefits package and why they may be going above the AE minima.

As well as these specific research aims, the research was used as an opportunity to further explore the factors that influence whether and how employers choose their pension scheme, how the consideration of costs and value for members come into this, explore employers’ awareness of Environmental, Social and Governance ( ESG ) investing and Collective Defined Contribution schemes ( CDCs ), and employers’ views on consolidation options for small pension pots.

The research was also commissioned to enable an understanding of employers’ views and experiences of AE , and their pension choices and behaviours following the COVID pandemic.

Research context

This research will be used to inform decisions regarding employers’ current contribution rates and the coverage of AE . This research was also conducted to improve the Department for Work and Pensions ( DWP ) evidence base on employee pension engagement, costs and charges standardisation, small pension pots consolidation, value for members and the expansion of CDCs .

Main findings

Most employers perceived Automatic Enrolment ( AE ) as a good policy, and were supportive of its objectives and aims. When considering potential AE changes (in line with 2017 Review Measures) [footnote 2] , many employers saw no issues with paying higher contributions.

Key themes and considerations regarding AE duties included financial and administrative cost considerations, employee engagement and questions around responsibility.

Employers mainly considered time and financial resource, the reputation and security of a scheme, value for members and advice or recommendations from outside bodies when making workplace pension decisions.

There was variation across employers in their responses to most areas of the research. Where particular characteristics have been referenced (i.e. size, sector), the evidence showed there were common views shared within these groups.

Employer pension engagement was often influenced by the amount of knowledge or resource they had. This engagement impacted on how invested (how much resource they allocated to pension provision) or involved (how engaged they were with their pension provision) employers appeared to be in their pension provision.

Engaged employers took a more ‘paternalistic’ approach whereby employees are ‘looked after’, meaning they typically provided wider ranging support, and considered the impact of decisions on employees. These were often larger employers, or from more ‘professional’ [footnote 3] sectors.

Such employers were distinct from less engaged employers who saw pension saving as the employee’s responsibility. This meant they were less likely to actively consider their options regarding workplace pensions, nor the impact of decisions on employees.

Alternatively, some decisions were not made because of the employers’ attitude but because of a lack of employee engagement or appetite for their pension, or high employee turnover.

Employers rarely switched their pension provider as they felt it was too difficult a process. The few who had, cited dissatisfaction with their provider’s customer service as the main reason. Most employers considered value for members to be a priority when considering switching schemes.

Considerations regarding small pots consolidation options included concerns around who the administrative responsibility would fall on, i.e. themselves or the government, time costs and how consolidation may impact previous pots.

Employers believed a lack of pension saving habits were influenced by affordability, short termism (the age of employees or distance from retirement) and employee lack of knowledge.

• When asked about Environmental, Social and Governance ( ESG ) investments, most employers said they’d offer ESG schemes as an optional scheme rather than the default, due to a concern about the risk that may come with poor investment returns.

Most employers, when asked, were not aware of Collective Defined Contribution schemes ( CDCs ).

• The current economic recovery from the pandemic, rise in the cost of living and the latest National Insurance ( NI ) increase (reversed at time of publication) can present a challenge to pensions engagement and contributions. However, employers are still able to meet the requirements of AE and most were to do so even with greater pension costs.

Methodology

This research was conducted in-house at DWP by the project team. Fieldwork was conducted from January 2022 to March 2022, and consisted of 59 in-depth telephone interviews with employers across a range of sizes, sectors and regions in Great Britain (GB).

Employers contact details were provided by The Pension Regulator ( TPR ). Employers were subsequently contacted via email, and asked if they would like to take part in the research. Employers that volunteered were scheduled for a telephone interview.

The notes from these interviews underwent a process of thematic analysis [footnote 4] . The themes identified during this process determined the findings in this report.

Findings explained

When it came to the objectives of AE , most employers perceived AE as a good policy, and were supportive of the objectives and aims of the policy. They were also comfortable with their duties, and saw no barriers to complying with any future changes to AE .

Some employers were less concerned with AE as a policy, and more so how easy they found it to meet the requirements of AE as an employer. Financial costs and administrative costs, such as time and resource, were the main costs associated with providing a workplace pension. Many employers, primarily large ones, only conceptualised financial and admin costs when initially setting their schemes up, and then saw their pension provision as straightforward and just a standard running cost.

For other employers, pensions were seen as costly in time and/or resource, often influenced by the employer’s knowledge of pensions or the associated processes, and their complexity. Some employers, who saw pensions as costly, questioned whether their employee’s pensions should be their responsibility.

There was a wide range of employer views and behaviours associated with AE and workplace pensions to account for when considering policy changes. This research attempted to draw distinctions from different sized employers and those from different sectors, and found that often even within these categories, views and experiences differed.

Some employers saw their AE duties as easy and straightforward. These employers often had more resource to understand and administer pensions, resulting in more positive views towards AE .

Other employers saw pensions as a good thing on a personal level, but AEs impact on them as an employer (i.e. the costs and burdens associated with providing a workplace pension) influenced their views on AE itself. This meant they tended to be less engaged with choices such as enrolment, raising awareness and choosing their pension schemes.

Findings 5 and 6

This research suggests there is a contrast between proactive employers (often larger in size) who view and use pensions as a benefit, and those employers who see pensions as an obligation to fulfil. Proactive employers tended to take a more ‘paternalistic’ approach, where their decision-making processes regarding their workplace pension were impacted by their desire to ‘look after’ employees. This is evident in their approaches to contributions, employee engagement and even enrolment decisions.

Employers believed that employee pension engagement tends to vary according to employee’s characteristics, but overall was perceived as fairly low by many employers. For these employers, they saw their employees’ attitudes ranging from no awareness of where or what their pension is, to awareness but little engagement. This lack of engagement, along with high employee turnover, meant that often employers did not see pensions as a priority, as they believed their employees didn’t.

When making decisions employers considered the resource burden on their company. Though financial costs were important, employers were more concerned with the time cost burdens associated with administrative tasks. This concern was prevalent across the choosing/switching and small pots research areas, suggesting it is an important factor in the employer decision making processes. Following this, the scheme’s value for members was the second most considered factor in their decision-making process.

Employers considered value as investment returns, ease of communication and support from the pension provider, i.e., customer support, and the scheme’s flexibility. Although value for members was most prominent response to the choosing/switching questions, it was also considered when contemplating new or changed initiatives, such as small pots consolidation and ESG investing. Here, employers predominately considered the risk to investment returns, however they also considered the ease of use or sustainability of the initiatives. Throughout the advice of intermediaries was relied on by employers in most research areas.

Few employers had switched as they perceived switching to be difficult and would only do so if dissatisfied with the scheme’s customer service, their flexibility or poor investment performance. When an employer had switched, their positive experience relied heavily on good customer service. This was often linked to reduced time costs as employers highly rated the new pension provider handling the admin burden.

Value for members was considered to include investment performance, customer service and flexibility from the pension provider. Most employers considered value for members to be a priority and would highlight this through their actions and attitudes. Some employers prioritised time and financial costs but balanced these factors with value for members where they could. Very few employers did not consider value for members to be a priority at all.

Due to AE being extended to lower earners and people who move jobs frequently, there has been a rise in the number of deferred pension pots (i.e., pots that are no longer being paid into). These pots often contain a small amount of money. Employers were asked their views on 2 consolidation options for small, deferred pots.

Deferred pots are automatically brought together by a large, government-approved scheme/pension provider.

The pots follow the employee to their new employer and are added to that pension scheme. Of the 2 consolidation options, most employers expressed more favourable views towards option 2, although they did feel employees should have the right to choose if they wanted to consolidate or not. Employers also expressed concerns on who would be responsible for the burden of setting up and regulating the admin for either consolidation option.

Employers perceived affordability, i.e. the cost of living and the economic impacts of the pandemic, as a prominent reason for why employees stopped saving into their pensions after a short period. Employers also considered short termism (a perceived short-sighted outlook on the employee’s future) to particularly impact younger employees; employers suggested young employees wanting their net pay immediately or not being used to having to pay into a pension led to their stopping saving.

Employers also considered employee lack of knowledge to be a reason, believing that some employees (mainly short stay and migrant workers) were not aware they were in a pension until the opt out window was over, and would then stop saving once the employee had realised.

Environmental, Social and Governance ( ESG ) investing is an investment approach that considers how companies impact the environment and society, as well as how they are governed. Most employers said they would offer ESG as an option rather than the default as employers felt investment choice should be given to the employees, and it was not their right to impose their beliefs on the employees. Employers also responded with a concern about taking responsibility for risk that could come with investment options with poor returns. Employers who said they would make ESG the default typically aligned their ethos with their pension provider, and stated they were concerned with their social responsibility.

Collective Defined Contribution ( CDC ) schemes are a pension scheme in which the employer pays a fixed rate of contributions, like Defined Contribution schemes. However, in a CDC scheme the employees receive pensions with variable increases through cross funding within the scheme between members. The defined benefit is not guaranteed and there is no funding obligation to the employer. [footnote 5] This research found awareness of CDC schemes was low amongst all employers. The few employers who were aware had often only heard of the schemes in passing, and felt they were unlikely to consider using CDC schemes due to a variety of reasons including time costs, the security of the scheme or the suitability of the scheme.

Both employer and employee pension engagement and contributions seem to be impacted by the economic recovery from the pandemic, rise in the cost of living and the latest National Insurance ( NI ) increase (reversed at time of publication). Employers articulate having more limited cash-flow for themselves, and referenced employees being more focussed on take-home pay, influencing their pension saving.

Qualifying earnings are the minimum basis for calculating AE contributions for employees. They are all the earnings between a lower ( LEL ) and upper limit ( UEL ) that is set by the government and reviewed each year.  ↩

In 2017 a review of AE was conducted in order to consider the success of AE , and explore ways to develop it further. This review outlined 3 key strategic problems to improve the future development of AE . These included current saving levels, issues with self-employed saving and engagement with saving. ‘2017 AE Review Measures’ refers to potential next steps as outlined by the review .  ↩

For the purpose of this report, the term ‘professional sector’ refers to a broad grouping of sectors of which provide services of a professional nature i.e. financial and insurance activities, administrative and support services.  ↩

Thematic analysis is a term used for a type of qualitative analysis used to identify themes within the data.  ↩

More information in the Collective Defined Contribution ( CDC ) Schemes parliamentary paper.  ↩

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A Guide to Getting a Pension

Here’s how to find a job that will provide for you in retirement.

Getty Images

The majority of employees who work for utility companies have pension benefits.

A traditional pension plan provides a steady income to former employees. Once retirees meet the job tenure and age requirements, they receive regular monthly payments throughout their lifetime. A minority of private industry workers (9%) were provided with a traditional pension plan through their jobs in March 2021, according to Bureau of Labor Statistics data. However, a few career fields continue to offer traditional pension plans .

Here's how to get a job that will provide you with a stream of payments in retirement:

• Get a government job.
• Join a union.
• Work for a big company.
• Join a very small firm.
• Move to the Northeast.
• Join the management track.
• Work full time.
• Earn a large income.
• Carefully consider your profession.
• Stay at the same job for much of your career.
• Marry someone with a pension.
• Create your own pension.

10 Jobs That Offer Traditional Pensions

Get a Government Job

Among state and local government workers, 86% had a traditional pension plan in March 2021. "Traditional pensions are slowly disappearing, but they're still widespread among government workers," says Richard Johnson, director of the program on retirement policy at the Urban Institute. " The federal government and most state and local governments provide traditional pension coverage to their employees, although the benefits have become less generous in recent years."

Primary, secondary and special education teachers enjoy almost universal (99%) traditional pension plan coverage . Members of the protective service including police and firefighters (90%) and those employed working with natural resources, construction and maintenance (90%) also enjoy strong rates of pension membership. Government workers involved in health care and social assistance (72%) or who teach at colleges, junior colleges and universities (83%) have slightly lower rates of pension coverage, although still much higher than in the private sector. Many state and local government employees (40%) remain eligible for the traditional pension plan if they work part time.

Join a Union

A union card just might be your ticket to better retirement benefits. Unions negotiate with company management for better retirement benefits for their members. That's why 79% of union members continue to enjoy traditional pension plans, compared to just 17% of nonunion employees. Collectively bargaining for better retirement benefits often yields better results than negotiating on your own.

Work for a Big Company

Large employers are much more likely to provide a traditional pension plan than small businesses. Among firms with 500 or more workers, 56% have a traditional pension plan. Only 26% of employers with between 100 and 499 workers provide a pension, and it drops to 11% among companies with fewer than 100 employees. "In the private sector, traditional pensions are still common among large, unionized employers, but they are almost unheard of in small employers," Johnson says.

Join a Very Small Firm

Most small businesses don't provide traditional pension plans to employees, but the exception is ultra-small companies with five or fewer employees. Sometimes small groups of professionals, such as doctors, dentists or lawyers, will set up a pension to defer some of their compensation for retirement.

Move to the Northeast

Jobs in the Northeast are more likely to provide traditional pension plans than employment opportunities in other parts of the country. The New England and Middle Atlantic regions have the highest rate of traditional pension coverage, with 29% of private industry workers eligible for a pension. Pension access is the lowest in the south, where just 23% of workers have access to pensions.

Join the Management Track

Managers, especially those who work in business and finance, have better retirement benefits than most other occupations. Some 22% of private-sector employees in a management role have a traditional pension plan.

Work Full Time

Many pension plans are closed to part-time workers. While 18% of private-sector full-time employees have a pension plan, just 7% of their part-time counterparts are eligible to participate.

Earn a Large Income

Almost a third (31%) of workers in the top 10% of the income distribution also have a traditional pension plan . Only 4% of people in the bottom quarter of the earnings distribution enjoy the same level of retirement security.

Carefully Consider Your Profession

A few specific industries are especially likely to maintain traditional pension plans. The majority of employees who work for utility companies (65%) have pension benefits. Those who work in the finance and insurance industries (28%) might also have a pension plan, especially if they work for a credit intermediation firm (39%).

Stay at the Same Job for Much of Your Career

Working at a firm that provides a traditional pension plan doesn't mean you will get payouts in retirement. You will likely need to work for a specific number of years for the same employer before you qualify. If you change employers , you might not qualify for any retirement payout at all, or only a very modest one.

"Those benefits don't work well when you have multiple employers throughout the course of your career," says Alan Glickstein, who analyzed retirement benefits at Willis Towers Watson. "Traditional plans are very valuable as you get close to your retirement years, but the benefits do not accrue evenly over the course of your career." Most pension plans are set up to provide the biggest rewards to people who spend decades with the same employer.

Pay Less Taxes on Retirement Withdrawals

Marry Someone With a Pension

If you are or were married to someone who vested in a traditional pension plan, you may qualify for traditional pension payments, even if your spouse with the pension passed away. Traditional pension plans are required to provide qualified joint and survivor annuities to spouses. "The benefit pays you a somewhat lower monthly amount in exchange for a benefit that continues if you die for the life of your spouse," Glickstein says.

Create Your Own Pension

If you have some savings, you can create a stream of retirement payments using an immediate annuity . This insurance product provides payments that are guaranteed to last the rest of your life. However, they're also known for fees, complicated mechanics and the risk that the insurance company could go out of business.

10 Tax Breaks for People Over 50

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