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More DC choice calls for more guidance
1st July 2014
“Radical changes to the retirement options for members of DC pension schemes have heightened the importance of employers offering quality financial education” says Jonathan Watts-Lay.
The 2014 Budget changed the face of retirement options for members of defined contribution (DC) pension schemes, with perhaps the most radical pension proposals of our lifetime. The changes have far-reaching consequences for employers, employees and pension trustees alike and introduce a level of flexibility and choice in a way that DC pension schemes have not previously seen.
It is proposed that from April 2015, there will be no restrictions on how savings from DC pension schemes can be taken from age 55, rising to 57 in 2028 when the state pension will be 67. Of course, other than tax-free cash allowances, it will still be treated as income however it is taken, and marginal rates of tax will apply.
Please see employee benefits (586 downloads) to learn more.
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