Pension reform – key points
For the last year there has been talk of the Pension Reform,
changes of which commence in April 2015.
- Flexible pensions – including the option to draw down Defined Contributions Pensions from aged 55, either by lump sum, in part or a combination.
- Changes to the tax implications on transferring pension funds upon death
Pensions help and guidance
As the pension changes are significant, the Government has made it a priority to consider ways to guide and advice pension holders so they can make the right decisions around their pension.
Guidance now available
Guidance has been released detailing information regarding the new ways to draw down a pension fund, the options being:
- Lifetime annuity
- Flexi-access draw down
- Lump sum payment
The second initiative is a pensions advice service called “Pension Wise”, which is a collaboration of The Pensions Advisory Service and Citizens Advice Bureau. The website is being developed but one-to-one advice will also be available over the phone and via pre-arranged meeting
Although this service will be free of charge, it will not replace the role of your financial adviser. Advice by Pension Wise is expected to be generic and practical.
Also, it will be just a one off service – they won’t be keeping a track of your financial affairs year on year.
Figurit can assist you with tax efficient pension planning and connect you with professionals who can provide any financial advice you require. Call today to discuss your personal pension requirements.
020 7376 9333