The confusion and uncertainty around the UK pensions system, will continue for at least five more years, despite government efforts at simplification, the head of pensions strategy at Scottish Life claims.
The prediction comes in the wake of comments made by current Pensions Minister, Stephen Timms who said a major overhaul of UK pensions, including incentives to work longer, will be completed by 2010.
Timms added the government would begin work on its own consultation document with the aim of implementing further changes to the UK pension policy, following the Turner report, due out in the Autumn.
But, Steve Bee, head of pensions strategy at Scottish Life,ays the plan would seem to be that draft legislation - and yet another Green Paper - will be doing the rounds by the end of 2006, shortly after A-Day.
Bee ominously predicts a five-year period of turmoil as fundamental pension issues are again thrown up, resulting in further radical changes at the end of it all.
He says: “Given that we’re just about to come to the end of a prolonged period of uncertainty and change for pensions in the UK, with retrospective changes to the tax legislation on pensions coming into force next year, I wonder if it would be a good time for us to have a bit of a breather? It’s going to be challenging enough for all those affected by retrospective taxation to be advised in good time, without us having to worry about how it will all be amended by the next wave of legislation.”
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