Employees could lose up to £3bn in tax-free cash if they fail to protect their entitlement to more than 25% of their pension fund, estimates Standard Life.
From A-Day anyone taking retirement benefits will be restricted to just 25% of their total pension fund value as tax-free cash, which for many members of occupational schemes could be significantly less than their current entitlement. In order to protect their entitlement members need to provide the pension scheme trustees with the relevant information including earnings for the 2005/06 tax year, in the case of directors it is the previous two years as well, along with the date they started work and details of any other pensions. Standard Life says it has identified 225,000 customers wh...
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