Freedom and choice – how changes in pension policy effects you

The way pensions work is changing. The governments new freedom and choice pension initiative will be available to retirees after the 16th April 2015, and ensures that people now have more choice over how they wish to plan for their financial future in retirement.

With this new policy the government will lift the restrictions on individuals who have made touch choices to save for the future. So as of next year, there will be no restrictions on peoples’s ability to draw down from their defined contribution pension pots after the age of 55.

With the greater freedom extended to pension policy, new financial service annuities are being developed to ensure that the financial service industry can help provide the correct pension plans for modern day retirement. Retirement is changing, it is no longer seen as a period where people are inactive. The average retirement period has doubled since 1948, with people living a fuller active life well into their later life*. As it is now believed that the average person in the UK will need £14,000 income per year in retirement*, having a secure saving plan in place has never been so imperative.

Aspire believes nothing is more important than planning a healthy financial future that will provide you with security throughout your retirement. To chat to our financial advisers on how they can provide a future-resistant retirement plan for you, or to find out how legislation changes could effect your current policy don’t hesitate to call us on 01928 73 55 10.

Source  1 – Gov: Freedom and Choice in pensions

Source  2 – FT Adviser