New pension freedoms top of pension schemes’ priorities
The latest research from Capita Employee Benefits has found that just under two-thirds (65.3%) of Pension Managers and Trustees state that implementing scheme changes as a result of the new pension freedoms will be the biggest administration challenge for the next year.
From 6 April 2015, people aged 55 and over will be able to access their pension funds as they wish and won’t be required to purchase an annuity. The timeframes to amend scheme rules and update systems have been tight and schemes have been working up to the wire to be ready. However, schemes have been largely unprepared and even at the end of 2014 a substantial 52.8% of Pension Managers did not know the changes they would need to make.
On 6 April an estimated 320,000 retirees will be able to take advantage of the new pension freedoms, however Stuart Heatley, Sales and Client Development Director, believes the deluge predicted by some may be an overestimate.
Commenting, Stuart said: “We would expect retirees to take their time before making any decision. Even at this stage we cannot be certain what impending retirees will do, but suspect Lamborghini salesmen need not draft in reinforcements on 6 April.” To order a copy of our latest Pension Scheme Insight Report, click here.
Pension Scheme Insight Report 2016
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