More than a third of British small to medium sized firms (SMEs) are oblivious to any changes in the pensions legislation on 6 April next year, new research indicates.
A survey conducted by Tenon finds awareness levels fluctuate within industry sectors, with the financial & business services leading the way with an awareness level at 77%, followed by manufacturing at 65% and agriculture at 68%.
For companies earning up to £1m, knowledge about the change is at 57%, rising to 87% for companies tuning over in excess of £20m.
Regionally, awareness levels stand at around five in ten people within the North East, North West and Yorkshire & Humberside rising to seven in ten in Wales and the South West. In the West and East Midlands, London, South East and East of England, around 68% of SMEs know about the impending changes to the pensions legislation.
Tenon also finds two in ten respondents, from the 64% of SMEs up to speed with A-Day, intend to buy a residential property to take advantage of the changes.
Peter O'Sullivan, director at Tenon, says the research reveals some causes for concern because as little as three in ten SMEs are really aware of the potential A-Day will provide, including the freedom to choose from a wider range of investments, cautioning its arrival in nine months time.
He says “We expect the demand for Sipps to increase sharply in the run-up to A-Day, as SMEs seek to take advantage of the opportunity to add property to their portfolios.”
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