Standard Life hails new pension rule
British pensioners have been helped by the recent Finance Bill, insurer Standard Life said yesterday.
New pensions legislation coming in to effect with the Finance Bill on April 6th - or 'A-Day' will introduce a standard lump sum entitlement of 25 per cent of pension benefits, tax free.
Moreover, the Bill also allows people to withdraw funds worth up to an additional 25 per cent on top of the lump sum - however, this group were initially required to make an additional pension donation to their plan after A-Day in order do this.
However, this rule was amended last Thursday, when the post A-Day donation requirement was dropped.
Welcoming the change of plan, senior pensions policy manager at Standard Life Andrew Tully said: "This change will allow up to one million people, especially those who left schemes before A-Day, to take more of their benefits as a lump sum.
"It will especially benefit those people who were not able to pay additional contributions into old pre A-Day arrangements, for example members of final salary schemes."
Send this article to:
