Warnings over pensions as A-Day approaches

Thursday, November 10, 2005

Standard Life has warned that people across the country are set to miss out on their entitlement to tax-free lump sums from their pensions if they do not act soon.

The company has urged pension providers to do as it has, and alert their customers to the impending A-Day reforms, which will happen on April 6th 2006.

"This is a complex issue so we've taken a decision to identify which of our customers are likely to need our help," said John Lawson, head of pensions policy at Standard Life.

"This will not affect only those who are high earners – many ordinary scheme members could be at risk of losing out."

He added: "We estimate that £3 billion in tax free lump sum benefits could be lost unless adequate steps are taken to protect existing entitlements."

The introduction of the government's Pensions Simplification Measures marks A-Day, legislation that will affect all 14.3 million private UK pension holders, according to Transversal.

The provider of dynamic knowledge management solutions also says that the reforms are set to cost £100 million in customer service bills.
track