Advisers can help clients boost their pension funds by over 70 per cent by taking advantage of the new annual allowance now rather than waiting according to Skandia.
Skandia’s analysis shows that a client aged 50 could boost their pension fund by 73 per cent by investing their entire allowance now compared to waiting ten years and by 32 per cent by investing now rather than delaying by five years
Clients who fail to take advantage of the new annual allowance that enables them to personally invest 100 per cent of their annual earnings up to a maximum of £215,000 could be missing out if they delay on investment opportunities. Skandia also warns that there are no guarantees that the current annual allowance will be retained by future governments.
Skandia pension marketing manager Billy Mackay says:
“Advisers will have many clients that could benefit significantly from the new pension regime. These benefits still need to be sold to clients, in most cases it will be up to advisers to make them aware of the new opportunities. For the client who is reluctant to commit to thinking about their pension they must accept that the decisions they take now can have a huge impact on their standard of living in retirement.
The cost of delay can be huge and there are no guarantees that the current annual allowances will be retained by future governments. Clients and advisers need to make sure they are making the most of the opportunities available while they still can.”