Pensions Simplification ‘A’ Day (Appointed day) arrived on 6th April 2006 and brought with it sweeping and radical changes for all pension plans – whether occupational or personal. Over recent years the rules & limits have changed. For example, from 6 April 2011 the individual Annual Allowance reduced to £50,000 and on 6 April 2012 the individual Lifetime Allowance reduced from £1.8 million to £1.5 million. All individuals are able to fund up to these limits, although tax relief will be restricted for high earners. (Schemes already in existence before 6 th April 2006 needed to update their rules to allow some of the new flexibilities.) Exceeding these limits will simply trigger a tax charge. The ‘A’ Day rules made the majority of pensions much simpler and there were a number of key advantages to the changes including the fact that Pensions are now much easier to understand & most people will now have greater flexibility in the size and timing of their contributions. There were also a number of other changes including:- • Early retirement age rose from age 50 to age 55 on 6th April 2010 • Full concurrency (i.e. being able to pay into any array of plans you wish), subject to the annual allowance • Wider investment flexibility • Up to 25% Tax Free Cash (Pension Commencement Lump Sum) is available from the majority of pension schemes. • The ability to commute a ‘small’ fund as a one off lump sum as opposed to having to draw a regular income – now set at a fund of £18,000 or less. • Flexible options at retirement when deciding to take benefits Why not contact us to review your retirement planning?

About Pensions

Company Pensions

Pensions Simplification

SIPPs (Self Invested Personal Pensions)

Personal & Stakeholder Pensions