The Association of Independent Financial Advisers (Aifa) and the Association of British Insurers (ABI) have published a guide for consumers explaining how A-Day may affect their pensions.
The guide aims to raise awareness of the changes brought by A-Day and recommends consumers seek financial advice if certain rules apply to them or they need further information.
Fay Goddard, deputy director general at Aifa, says: “We hope it will encourage people to seek advice where required.” She points out the changes are relevant to anyone with a pension, rather than just affecting high earners.
Specifically, the guide explains:
Helen McCarthy, head of pensions and savings development at the ABI, says: “A-Day will bring in the most significant changes to pensions for many years. We hope that the new, simplified arrangements will help to encourage more people to save more for their retirement.”
But, McCarthy warns the pensions simplification is only one step towards solving Britain’s savings crisis. The ABI has therefore suggested some policies to increase overall savings levels, such as automatic enrolment into workplace pensions schemes and incentives for employers who contribute to their employees’ pensions, which it hopes the government will take on board.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Emily Perryman on 020 7968 4554 or email [email protected].IFAonline
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