Pension Reforms Challenges and Opportunities
This post is part of the SmarterInsight™ series and is written, as usual, by Tim Hale an investment expert who frequently informs our investment committee.
“The goal of retirement is to live off your assets – not on them” Frank Eberhart
The Chancellor has – in the main – done us all a big favour
New pension reforms came into being on 6th April 2015. The materially greater freedoms that now exist have much appeal, yet they come with greatly increased complexity both in understanding and in execution. On balance these reforms are welcome, but the need for high quality advice has never been greater, both to minimise the risks, but also to maximise the opportunities that they provide.
The British have had a love-hate relationship with pensions for many decades. After some years in the doldrums, the cycle is on the upswing – or certainly deserves to be – largely due to recent changes made by the Chancellor; more on that later. A potted history of pensions and pension reform provide a useful context to these new changes.