Norwich Union has launched an information pack which is designed to help IFAs understand how pensions simplification will affect their client's policies and how to plan for its implementation on A-Day.
Called Simplyfication, the guide details Norwich Union’s interpretation of simplification proposals, and will be regularly updated with any changes to Inland Revenue and DWP rules once announced.
NU points out, for example, current government plans to ‘simplify’ pensions will in fact complicate matters for most intermediaries, as they will need to explain anyone member signing up to occupational pension schemes before 16th March 1987 will see an improved tax-free cash position, whereas other members will find their limits is ‘capped’ and more complex.
The document also points out anyone earning over £30k will now have access to full concurrent membership of occupational schemes, so take-up of group AVC contributions is likely to fall, while lifetime allowances and calculation of transitional arrangements is likely to be the most aspect of simplification rules, says Iain Oliver, head of pension development at Norwich Union.
“The Inland Revenue has proposed a radical overhaul of the pension tax regime and it will affect all aspects of pension provision. In the long run, this should make it easier for consumers to understand pensions and hopefully encourage people to save for their future. However, the next 15 months will see a period of extensive change in the pension industry and it is our aim to help IFAs prepare for this.”
Contact your Norwich Union consultant to obtain a copy of the Simplyficationdocument.IFAonline
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