AJ Bell has called for simplification of the rules governing uncrystallised funds pension lump sums (UFPLS) and said demand for the option may not exist in the retail market.
An UFPLS is a combination of a tax free lump sum and a one off taxable income payment and comes as a result of pensions freedom set for 6 April. AJ Bell chief executive Andy Bell said: "Pension savers are punch drunk with acronyms but at least most of them relate to terms which the customer understands. "This tongue twister of an acronym is reflective of the rush in which this legislation has been introduced." He added: "I am not convinced the demand really exists for UFPLS in the retail market in which flexi-access drawdown can achieve the same and more." However, Bell said the...
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