There have been several announcements about the coming changes in the UK pension schemes. First modifications will take place first quarter of 2016 already.
Here is the list of things investors should be aware of:
Pension Taxation: Some changes are already on their way and some more are very likely to happen. On Budget Day, 16th March, 2016 there will be a review of pension tax that might lead to the abolition or reform of pension tax relief. It is important that you follow those in order to learn about possible abolition of pension tax relief and/or other measures that are meant to help investors facing pension exit penalties.
New State Pension: On 6th April, 2016 the New State Pension will be launched. This will be a regular payment from the government that you can claim if you reach State Pension age on or after 6 April 2016. You would still be eligible to get a State Pension if you have other income such as a personal pension or a workplace pension. It is an attempt to simplify the state pension and to re-distribute pay-outs more equally.
Auto-enrollment: By the end of 2016 over 500,000 employers will have gone through staging. It is estimated that the last three months of 2016 will see an estimated 156,000 employers hit their staging date.
Low Cost Financial Advice: The joint Treasury/FCA advice and guidance review is expected to report in time for the Budget next March. This could free up access to low cost simple advice to help people plan their finances.
Disclaimer: All content provided on this page are for informational purposes only. Just service Hong Kong makes no representations as to the accuracy or completeness of any information on this page or found by following any link on this page. Just Service Hong Kong will not be liable for any errors or omissions in this information nor for the availability of this information. Just Service Hong Kong will not be liable for any losses, injuries, or damages from the display or use of this information. This policy is subject to change at any time.
Just Service Hong Kong is a member of the Hong Kong Confederation of Insurance Brokers in Hong Kong, transacting Long Term (including linked long term) Insurance business. Nothing in the comments above should be taken as offering investment advice or making an offer of any kind with regard to financial products or services of any kind. It is therefore important to reinforce that all comments above are designed to be general in nature and should not be relied upon for considering investment decisions without talking to licensed advisers.