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Freedom and choice in pensions: government response to the consultation

Freedom and choice in pensions: government response to the consultation

Today the government has published its response to the consultation. The response outlines the further decisions that the government has taken to deliver the reforms announced at Budget 2014, including that: 

-          everyone retiring with defined contribution pension savings will have a new right to free and impartial guidance at retirement, provided by independent organisations with no conflict of interest

-          the government will continue to allow transfers from private sector defined benefit to defined contribution schemes, subject to two new safeguards

-          transfers from funded public service defined benefit to defined contribution schemes will also continue to be permitted, although transfers from unfunded schemes will be banned

-          the government will amend the tax rules to support freedom and choice, through changes to encourage the development of new products and a new override to ensure individuals can access their pension flexibly 

A brief summary of what the reforms mean for individuals can be found at: https://www.gov.uk/government/news/pension-reforms-eight-things-you-should-know

The full government response document can be found online at: https://www.gov.uk/government/consultations/freedom-and-choice-in-pensions

 

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