Independent Financial Life Planners Bishop's Stortford: More pension changes?

Thursday, 2 July 2015

More pension changes?

Enable’s IFAs of Bishop’s Stortford note that the government wants to extend the pension overhaul to allow pensioners to sell back annuities to providers. Under the new rules, which took effect in April this year, people aged 55 and over are able to cash in their pension savings rather than buying an annuity. This latest proposals would allow five million pensioners who have already bought an annuity with their pension pot to sell it back for cash. But many are warning that this further change should not be rushed through.

One trade body has said that the proposed start date of April 2016 could put pensioners and their families at risk. The Association of British Insurers (ABI), which represents insurers who manage pension money, said that the rights of pensioners' dependents also needed to be protected. Many think it makes sense to look at lessons learned from recent pension changes before there are more.

The ABI also argues that the scope of the proposals needs to be more clearly defined "Naturally there are considerable challenges in establishing a functioning market, and many unresolved complex legal, regulatory and prudential questions," said Yvonne Braun, "We want to work with government to help resolve these issues, but given the lessons learned from the [recent] reforms and the need for clarity in many areas, we urge the government not to rush these proposals through for 2016. "Allowing more time will ensure an appropriate regulatory regime can be developed to give this new market a chance to succeed."

If you need help deciding what to make of the new pension regulations the independent financial advisors or Enable in Bishop’s Stortford can help you look at all your options.

Issued by: Enable Independent Financial Life Planners  25c North Street, Bishops Stortford, Herts CM23 2LD •  Telephone: 01279 755950 - Fax: 01279 657339  Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.