Much has been written about the pension changes that take place on A-day
, April 6.
Evidence suggests thousands had already started funnelling money into Sipps ready to buy a property, while others have either bought or reserved homes on yet-to-be-built developments to sell to their pension in anticipation of A-Day
- April 6, 2006.
There will be a decline in new business premiums flowing into all areas of the occupational pension market mainly due to customers switching into more flexible pension products such as SIPPs post A-day
, and the anticipated introduction of the NPSS.
This was down to growth in pensions organised for staff by their employers and increased levels of transfer activity in the run-up to A-Day
Previously the maximum lump sum on death in service was four times final remuneration plus a return of contributions, but since A-Day
, a lump sum can be paid tax free up to the member's Lifetime Allowance (pounds 1.
The same problem applies to investors seeking commercial property investments using pension money and they must act quickly and complete the building purchase before A-Day
While the A-Day
reforms don't sweep in for another 13 months, however, now is the time you should be considering your options under the new regime - and brushing up on your pension position.
The flexibility of the A-day
changes mean that trading within your SIPP is not outlawed.
L&G, which employs 2,000 in Cardiff, said sales lifted 28% to pounds 363m in the UK between January and March as customers and their advisers prepared for the new regulations on April 6 - known as A-Day
People who can take more than 25 per cent of their pension as a tax-free lump sum can continue to do so after A-Day
, but they must make sure their scheme trustees have records.
A ALTHOUGH he did make some amendments, most of the changes on pensions A-day
are still due to start in April.
New research published by Brewin Dolphin reveals that more than half (58 per cent) of pension holders are unaware they may need to review their retirement provision as a result of pension simplification rules being introduced on A-Day
- April 6.