The new pension rules mean a whole new world of choice for your employees on how to draw income in retirement. And it’s not just about pensions, as all savings will need to be considered (such as ISAs) and potentially that of partners if retirement income is to be optimised.
Many employers are concerned about how they are going to make the new flexible retirement income options available to employees and deferred members or whether they want to at all. Pension schemes and administrators may not have or want to provide the functionality to support ‘drawdown’ type services.
In addition, many trust based schemes do not wish to carry the risk of looking after members’ money throughout retirement when they may need to make a series of decisions as they progress through retirement. When you add to this the complexity of how employees decide whether some type of drawdown, or perhaps an insurance product such as an annuity is more suitable for their income needs. In practical terms it could be extremely challenging for employers and trustees to offer a comprehensive service to meet all needs without having a trusted service provider to support them.
WEALTH at work have a comprehensive service offering to help your employees meet their needs are met – not just at the point of retirement but in the years leading up to retirement and beyond.
There are 3 simple questions to address when considering retirement options; these have not changed because of the budget however, the answers to those questions may have done.
The WEALTH at work service is flexible in nature which means you can decide what elements you want and also decide how they are paid for e.g. costs for different elements can either rest with the employer, trustee or the employee or a combination. This means we can create a service which is right for you.
Jonathan Watts-Lay, Director, WEALTH at work comments, “Greater flexibility to decide how to take income from pension savings is fantastic news for savers, but without the right financial education and advice it could leave them incredibly vulnerable to making poor decisions.”
To talk to Jonathan about the pension changes and how WEALTH at work can help, please leave your details below or click here to find out more: