Retrospective changes to preservation requirements for deferred pension rights could decide whether IFAs face a tough year advising the majority of their clients on which transitional protection to apply, warns Steve Bee.
Bee, head of pensions strategy at Scottish Life, says the coming Pensions Bill, which is likely to propose a change to the preservation requirements. This could in turn influence how advisers act on proposed legislation on transitional protection set out in the Inland Revenue's second simplification paper published in December. According to the IR, UK pensions rules face retrospective changes. However, Bee says, for this to work, people who have already "left the service" and have deferred pension rights will need to change their preservation rights retrospectively. If that happens,...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes