Institute scheme aims to increase pension giving

The Institute of Fundraising is to publish recommendations on how to encourage payroll givers to sign up to pre-tax pension giving when they reach retirement.

The recommendations, to be published before August, will look at ways to ensure that people who currently give through payroll giving schemes will continue to give from public sector pensions. They are designed to alleviate a situation in which 30 per cent of payroll givers stop giving when they retire. The scheme will not apply to statutory pensions.

The institute's report will consider ways to promote pension giving through public pension providers such as the NHS and the Teachers' Pension Scheme, because 41 per cent of people who claim a pension receive a public sector one. The focus is on how to target pension givers in this sector rather than those paying into individual company schemes, which make up a more dispersed group.

"Tax relief on pensions, which means that not all tax paid on pensions goes to HM Revenue & Customs, is a very attractive proposition for many people," said Tina Steele, payroll giving project manager at the institute.

"People in retirement can also feel better off. They've paid off their mortgages and many of their monthly commitments have come to an end."

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