Steve Bee, head of pensions strategy at Scottish Life, says in a new note that rules taking effect on 6 April 2006 could affect some 10 million company pension scheme members to seek advice because of "concurrency".
So-called "full concurrency being introduced as part of new tax law implementing the change to the UK's pension system will see company pension scheme members able to take out private pensions at the same time.
Actually, Bee says, under full concurrency law people will be to take out as many different types of pensions at one time as they see fit.
This goes against current rules, which outlaw maintaining a personal pension and a company pension simultaneously.
Bee says those currently in company pension schemes may see futures muddied as employers begin to tighten their belts on pensions promises in order to save money. The result might be a larger personal pension savings market.
It is conceivable that these clients might become a major source of new business for advisers, as they begin to address their future pension needs.
Writing on his Beeline website, Bee says: “If so, some of the changes coming in on A-Day could interest them enormously – particularly the ability for personal pension holdings to be invested in residential property and the lifting of the age-related limits on pension contributions."
Bee says that a figure of around 10 million affected is similar to figures the government had in mind when it set about its reforms. The difference is the government was thinking about new savers, or those not members of company pension schemes.
Bee says he is convinced the new laws will also attract people who already have pensions, yet are becoming increasingly disillusioned. Instead, the question may be weather or not pension sales to those already tied up in pension schemes will increase after A-Day.IFAonline
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