HM Revenue & Customs (HMRC) has claimed that the forthcoming changes to the UK pension rules will both simplify and expand the options faced by pension scheme members.
HMRC claims that the changes in tax regulation that are to are be in place from April 6th (named A-Day) onwards will provide people with simpler and more flexible retirement arrangements, as well as with an opportunity to review their own pension provisions.
It says that the standardisation of regulation for the UK pensions system will help to remove much of the confusion caused by the welter of different sets of rules currently in place, while also offering pension holders more options on how and when they contribute to and draw benefits from their pension schemes.
"The new regime is designed to make pensions more understandable, making it easier for those already saving for retirement and more accessible for those thinking of doing so," according to HMRC.
"Pensions A-Day is an ideal opportunity for people to review their provision for retirement."
The changes to tax regulation will provide everyone with the ability to withdraw up to 25 per cent of their pension savings as a tax-free lump sum, on condition of individual scheme approval.
Moreover, tax relief will be given on pension contributions up to 100 per cent of people's annual UK earnings, while also, for the very first time, everyone will be given the option of investing in more than one pension scheme at the same time.
A-Day changes will make pensions easier, claims HMRC
Pensions Quote Line
0845 108 0505
A-Day changes will make pensions easier, claims HMRC
Wed, 08 Mar 2006
Recommended links
A-Day awareness on the rise, financial advisers sayBrits baffled by UK pension regulations, poll reveals
Compare top deals to start your pension planning
Pensions.co.uk is part of a large network of financial sites created to help advise you on life events, such as buying a house, Mortgages.co.uk; insuring your car - CarInsurances.co.uk; your life - LifeInsurance.co.uk; and your home - HomeInsurance.co.uk.
1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.
| pensions news |
|---|
| Government will protect pension holders - Tue, 06 Jan 2009 |
| Pension investors told to consider hotel rooms - Wed, 24 Dec 2008 |
| Pensioners will see a boost to their income - Mon, 15 Dec 2008 |
| More News |
Pensions Newsletter
Please enter your email below and subscribe to our monthly newsletter
Save on Your Mortgage
Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.
Protect Your Health
Find Critical illness, Life and Private Medical Insurance PMI policies.