Skandia has published a guide to pensions for advisers to use with their clients, outlining the key principles they ought to be aware of.
The guide, A Fresh Perspective on Pensions, explains why pensions remain one of the most tax-efficient ways of saving for retirement.
The guide is jargon-free and explains the principles of pensions that are beneficial for clients to understand, including tax efficiency and contribution allowances post-A-Day.
It also covers how pension funds can be built up, how investment choices work, and the choices available to people at retirement.
Skandia says since A-Day, clients have greater opportunities to benefit from tax relief and more freedom in how benefits are taken when it comes to retirement, providing clients are aware of all their options.
Head of pensions and bonds marketing Nick Bladen says: “There is still a huge savings gap when it comes to planning for retirement. We also believe there is still a gap in consumer education and advisers have a strong role to play in helping to fill that gap.
“For many clients, the world of pensions can seem confusing and perhaps even daunting, but it should not be like that.
“We identified a real need in the market for a clear piece of literature that explains exactly what pensions are and how they work, which is why we designed this guide to help advisers in discussions with their clients. When people save into a pension it is really important that they feel comfortable with where their money is going. The more they understand about how it works the better.”