I welcome the common sense approach adopted by the Treasury
in not, after all, trying to fine individuals who take a pension pot and fail
to advise earlier pension providers they also have benefits with.
The revised guidance extends the deadline from 31 days to 91 days and that states that only active providers need be contacted. This gets around the problem that individuals may well have pensions with providers that they have simply forgotten about. I know that shouldn’t happen, but not everyone loves pensions as much as me – and you, presumably, as you are reading this.
Common sense has prevailed.
The major problem remains however. I’m not sure anyone, including the government who introduced the changes, knows exactly what is going to happen when the full freedoms on pensions come into force. Will there be reckless decisions to cash in pensions? Will advice be adequate? How will the government react to those who take, spend and then come back, begging cap in hand?
One thing is for sure. To change the analogy, the genie is out of the bottle and no future government will be able to put him back.
A pragmatic step by the government with regard to individual fines. But nevertheless, it’s pragmatic steps into the unknown.
The revised guidance extends the deadline from 31 days to 91 days and that states that only active providers need be contacted. This gets around the problem that individuals may well have pensions with providers that they have simply forgotten about. I know that shouldn’t happen, but not everyone loves pensions as much as me – and you, presumably, as you are reading this.
Common sense has prevailed.
The major problem remains however. I’m not sure anyone, including the government who introduced the changes, knows exactly what is going to happen when the full freedoms on pensions come into force. Will there be reckless decisions to cash in pensions? Will advice be adequate? How will the government react to those who take, spend and then come back, begging cap in hand?
One thing is for sure. To change the analogy, the genie is out of the bottle and no future government will be able to put him back.
A pragmatic step by the government with regard to individual fines. But nevertheless, it’s pragmatic steps into the unknown.
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