Pensions : The impacts of the new regulations

Jonathan Watts-Lay, Director, WEALTH at work, talks to the Business Reporter about the impact the new pension regulations will have on employers and employees once they come into force this April.

 

 

The Budget changed the face of retirement options for members of defined contribution (DC) schemes, with perhaps the most radical pension proposals of our lifetime. Once the pension changes come into force in April, many restrictions will be removed on how pension benefits can be taken from age 55.

As April fast approaches, many employers are not prepared for what will bring a whole new world of choice on how to generate income in retirement. And it’s not just about pensions – all savings will need to be taken into account (such as ISAs) if retirement income is to be properly considered.

This greater flexibility to decide how to take income from pension savings is fantastic news for savers, but without the right financial education and advice, employees could be left incredibly vulnerable to making poor decisions.

We believe employees will typically have 3 key questions when it comes to how the pension changes will affect them;

1. What do I need to know?

Employees will need to understand the advantage and disadvantage of each retirement income option.

2. What is right for me?

This will involve supporting employees through the decision making process given their specific personal circumstances.

3. How do I do it?

To address this, employees may need help to implement their chosen plan whether that is drawdown, annuity or a combination of options.

WEALTH at work has a complete service offering to help ensure employees are informed and can take appropriate action not just at retirement but in the years leading up to retirement and beyond.

To find out more about our services, please contact us.

Further Coverage can be found in The Telegraph.

Links to websites external to those of Wealth at Work Limited (also referred to here as 'we', 'us', 'our' 'ours') will usually contain some content that is not written by us and over which we have no authority and which we do not endorse. Any hyperlinks or references to third party websites are provided for your convenience only. Therefore please be aware that we do not accept responsibility for the content of any third party site(s) except content that is specifically attributed to us or our employees and where we are the authors of such content. Further, we accept no responsibility for any malicious codes (or their consequences) of external sites. Nor do we endorse any organisation or publication to which we link and make no representations about them.