The Strachan Partnership - Positive Wealth Managemant

Pensions Simplification

'A' Day (Appointed day) arrived on 6th April 2006 and brought with it sweeping and radical changes for all pension plans – whether occupational or personal.

From this date there will be just one set of tax rules for all types of pension, with an individual Lifetime Allowance (£1.75 million - 2009/2010) and an individual Annual Allowance (£245,000 - 2009/2010). These limits will increase each year (Please ask for the specific yearly limits). All individuals will be able to fund up to these new attractive limits. Schemes already in existence before this date will need to update their rules to allow some of the new flexibilities.

Exceeding the limits will simply trigger a tax charge.

The ‘A’ Day rules made the majority of pensions much simpler and there could be a number of key advantages;

  • Pensions are much easier to understand
  • Most customers now have greater flexibility in the size and timing of their contributions
There will also be a number of other changes including;
  • Early retirement age will rise from age 50, to age 55 by the year 2010
  • Full concurrency (i.e. being able to pay into any array of plans you wish), subject to the annual allowance
  • Wide investment flexibility
  • Up to 25% Tax Free Cash will be available from the majority of pension schemes
  • The ability to commute a ‘small’ fund as a one off lump sum as opposed to having to draw a regular income
  • Flexible options at retirement when deciding to take benefits
  • No need to ‘have to’ secure benefits at age 75 via an annuity
Why not contact us to review your retirement planning?

back to top


Write to us

Your message or query

* name

* email or phone number

* required

The Strachan Partnership Ltd is authorised and regulated by the Financial Services Authority.
FSA No 432009. Registered in Scotland No SC283174. Registered Office 37 Hay Crescent, Peterhead, Aberdeenshire, AB42 1HH.

© The Strachan Partnership 2009   /   Website design & SEO by Cherith Press