Six tips on UK pension reforms for financial advisers
2 Apr 15
A radical reform of the UK pension system gets underway this month allowing savers in defined contribution schemes much greater freedoms on how they can drawdown and utilise their money.
Under the previous system, tax rules had virtually forced savers at retirement to buy an annuity with the bulk of their pension pots after taking advantage of a 25% tax free drawdown allowance.
The new rules allow savers to drawdown as much as they like, when they like albeit with different tax implications. If investors don’t want the income for life option of an annuity they can now switch their money into new funds to utilise their tax free drawdown allowance more efficiently.
The reformed system brings with it greater choice but also more complexity creating new challenges for financial advisers. David Pope, distribution director at Legal & General Individual Retirement, gives his tips how advisers can really add value to clients in the new world of ‘Freedom & Choice’.
Scroll through the gallery to see the six tips.
