Pensions reforms introduced
Major changes to the UK’s pensions system, which make it simpler for people to plan for their retirement, are now in place after the passing of A-day on April 6.
From April 6 – known as A-day in the pensions world – people will be able to receive higher tax relief on their income that they invest in a pension, up to a ceiling of £215,000 a year.
People will also be able to invest into a company pension scheme and a private plan at the same time, allowing them to make additional pension provision.
Additionally, it will now be possible to draw a pension and continue working – potentially making pensions a more attractive investment for many.
However the new tax rules signal increases in the minimum age for all types of pension, as by 2010 the minimum age will be 55.