View more on these topics

Pension freedom: wish you were here?

Out there lies a warm ocean of desert islands, sun, sand and palm trees, where individuals can choose how and when to tax-efficiently access their pension fund and realise the retirement dreams they have worked so hard for.

There also lies rocky outcrops, icebergs, pirates, hurricanes and sunken wrecks, where individuals can miss opportunities, pay more tax than they need to, run out of money and see their dreams of a happy retirement sink into the murky depths.

You will no doubt be familiar with new pension freedom changes that come into effect from 6 April 2015, billed as the biggest changes in pensions in living memory. While this creates opportunity, there are also risks.

Practical tips for your staff and business
As a progressive employer, you are ideally placed to help your employees, but pension freedom has implications for your business too. You will probably need to make some changes to your pension scheme, communications and processes in order to create an environment that nurtures educated, well-informed retirees who can take advantage of the new freedoms given to them. For example:

  1. The government’s free Pension Wise service will give general support for free. Direct your staff to this service in the first instance but expect a whole lot more questions to come back from these sessions.
    https://www.gov.uk/pensionwise

  2. How do you help protect your employees from poor advice? Circulate information from the regulator/insurer/employee benefits provider on when information becomes available. When you receive updates from a trusted source, let staff know about it. They value your guidance and support. See below for some more information on trusted sources.
    The Pensions Regulator (TPR)
    Financial Conduct Authority (FCA)

  3. Are you ‘pension freedom ready’? Are the new freedoms actually available within your pension scheme? Get in touch with your pension consultant or provider and ask some questions.

    – Can members take their entire pension as cash?
    – Will individuals need to take out new plans in order to access flexible income?
    – Are any processes in place to stop individuals making an irreversible decision?
     Does a policy need to cease in order to take benefits?

  4. Pension freedom is all about taking benefits, but younger staff need as much help to build a pension fund. You can help promote sensible spending. Education and advice delivered at regular intervals in an individual’s careers can help foster a culture of healthy money management that will, in turn, deliver good outcomes at retirement.

Take positive action to deliver the best outcomes for your employees
Get in touch if you would like to speak to us or for further information about any of the areas discussed.
www.jelfgroup.com/freedom

Recommended

Rookes-Caroline-MAS-2013-500x320.jpg
12

Caroline Rookes: MAS review of Farnish report will be ‘open and transparent’

Money Advice Service chief executive Caroline Rookes has promised its review of recommendations published by Christine Farnish will be “open and transparent”. Earlier today, the Farnish report recommended that the MAS budget for consumer education be halved, while the body should also face a substantial reorganisation. The MAS has pledged to investigate the findings before […]

Mark-Neale-at-office-in-2014-700.jpg
6

Advisers hit out at FSCS for ‘heart sinking’ £20m interim levy

Advisers have hit out at the Financial Services Compensation Scheme for landing life and pensions intermediaries with aninterim £20m levy after a wave of Sipp misselling claims. Firms began receiving invoices on 23 March and will have 30 days to pay, or to use existing credit facilities. The FSCS says the move was driven by […]

Out of context: Kevin Carr

Out of context

“When I get unknown missed calls it’s usually either Money Marketing or PPI misselling” Carr Consulting & Communications managing director Kevin Carr gambles every time he picks up the phone “It sounds like some kind of play pen” F&TRC’s Ian McKenna is confused by the Treasury’s use of the term ‘regulatory sandbox’ in the Budget “My liver couldn’t […]

FCA interior logo 620x430
3

FCA reviews independence standards as Mifid II deadline approaches

The FCA is reviewing the standards advisers must reach to hold themselves out as ‘independent’ ahead of the introduction of Mifid II reforms in January 2017. The Mifid II changes are designed to strengthen protections for retail investors across the EU through limits to the use of commissions, stricter requirements for product design and distribution, […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com