The Inland Revenue must publish the final changes to its pension simplification paper before the end of the month if A-day 2005 is to become reality, warns Steve Bee.
Bee, who works for Scottish Life as head of pensions strategy, believes the proposed date for implementation of the new legislation, 6th April 2005, could leave IFAs with too little time to advise all their clients about the changes if the full details are not published immediately following Gordon Brown's Budget announcement on Wednesday.
If full details are delayed any further, Bee says, "we would have serious concerns that the timescales for implementation envisaged by Government are not realistic and could cause problems for us and our clients".
New pension legislation coming into force will affect nearly everyone saving for their retirement, but while these changes should come into effect as sooon as possible, Bee says, there no reason why it should be done in a rush.
"To actually implement these far-reaching changes to legislation, pension providers and advisers will need to know precisely what the new rules will be; with all the "i's" dotted, and all the "t's" crossed. Sufficient time will then be needed to implement these welcomed reforms in a careful manner," he says.
So far, the industry is still awaiting the final draft. "Full details have not yet been published by either the Inland Revenue or the DWP, and, unless they are soon, we believe A-day should be postponed," Bee adds.IFAonline
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