Standard Life suggests pensions calculator change set for impact

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Standard Life suggests pensions calculator change set for impact

Fri 10th Dec 2010

The government's decision to review the drawdown regulations on pensions is likely to have a significant impact, according to an expert from Standard Life.

Head of pensions policy at the company John Lawson described the state document as being "great news" for the SIPP sector, since such transactions tend to be associated with this area of retirement savings.

Standard Life summarised the main points of the government review, highlighting how tax-free lump sums will be able to be taken after age 75 and several changes will be made to drawdown rules.

"Removing these restrictions and substantially reducing the tax charge will result in a big increase in the numbers of people opting for drawdown via SIPPs," said Mr Lawson.

The new regulations will come into effect from April 6th 2011.

Drawdown is defined by the Pension Advisory Service as being the option to keep savings invested rather than buy an annuity.

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