To most outside observers, progress on pensions reform seems to have stalled in 2008. In fact, much behind-the-scenes modelling work and interdepartmental government discussions were being held with a view to putting forward further concrete government proposals for public consultation. This was reinforced by announcements in Budget 2009.
Speculation in the media has been rife as to what form the new system will take and what impact it could have on current arrangements, but there certainly is no reason to panic. Given the most optimistic timeframes, any reformed system will only be implemented from 2012 onwards. Such an important financial sector reform means that proposals will be widely consulted and discussed. Legislation too would take some time to draft, consult on and finalise.
Assurances have been issued by various players in Government that vested rights in terms of people’s pensions will be protected. Members and advisers should act responsibly and continue making correct and well-informed decisions about retirement planning.
Liberty representatives are actively engaged in industry forums that discuss retirement reform, conduct research and interact with Government. As developments unfold, we will continue to provide updates and analysis for members, advisers and other stakeholders.
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