pensions

IFAs should be extremely cautious when promoting government plans to allow people to invest their pension pot into residential property as they could be putting themselves at risk, warns pensions expert Stewart Ritchie.

The government's objective of getting more people to put off retirement to a later date has taken a knock with research showing most people over the age of 50 are subject to age discrimination when looking for new jobs.

Independent Financial Advisers may pick up new business after the chancellor this week revealed advisers will be able to provide employees with tax-free advice worth up to £150 per year.

The axe taken to the DWP by chancellor Gordon Brown in the Budget is a cause of great concern to staff at the Citizens Advice Bureaux as evidence suggests many people are already not getting the required levels of service from the DWP.

IFAs hoping for further details on the Inland Revenue's proposed simplification rules will be highly disappointed by the Budget published today as it offers little new on the changes facing pensions in the next couple of years.

People deferring their state pension for at least a year will from April 2005 be able to take their benefits as a lump sum, the Budget says.

Consumers should be wary of unlocking their pensions as there is a high risk of a reduced level of income in retirement, warns the FSA.

The Inland Revenue must publish the final changes to its pension simplification paper before the end of the month if A-day 2005 is to become reality, warns Steve Bee.

One flat-rate benefit paid out to all UK long-term residents over the age of 65 could work as a simple and sustainable solution to the current problems with the state pension system, says the Pensions Policy Institute.

Some 10,000 people will be hit by the Inland Revenue's proposed £1.4m lifetime limit when the new pension simplification legislation comes into force, according to the National Audit Office.