The Government is to give all pensions, apart from defined benefit schemes, the opportunity to be in...
The Government is to give all pensions, apart from defined benefit schemes, the opportunity to be in a single tax regime
The move is designed to cut complexity in pensions administration and make it easier and cheaper for providers to produce a stakeholder product at a low charge
All pensions will be in the new tax regime with the exception of occupational money purchase, which have the option to switch, and final salary. For the moment these remain outside the tax regime, although the Government is open to suggestion on how to allow them in. Everyone will be able to contribute up to £3,600 a year, even if they are not earning, and those who want to contribute more will be able to do so subject to existing age and income limits
Currently contributions to personal pensions are paid gross by the self employed and net of basic rate tax by the employed. The proposed approach is that all contributions from individuals should be paid to the provider net of basic rate tax
Peter Jordan, pensions manager at Skandia Life, said: "Administration is set to become a lot simpler. This is attractive to pension providers and I expect companies that do not currently offer pension products will see an opportunity in entering the market for both stakeholders and personal pensions, which will have to become more competitive
He said fund management companies that do not currently offer pension products are likely to be the newcomers in the market, and he expected many of these companies, and perhaps some US mutual fund providers, to join the race
Succeeding co-founder Simon Rogerson
Janus Henderson Global Dividend Index
More than 10 million shares allocated
Long-term strategic holding
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