Some 200 advisers participated in the survey and were asked for their views on each of the proposals. The results show that they are overwhelmingly in favour of change to the current system.
Headline figures of support for the proposals are:
· Extend rules on serious ill health lump sums - 96.4% of advisers agreed
· Simplify the current capped drawdown pension rules - 96% of advisers agreed
· Scrap the lifetime allowance - 94.4 % of advisers agreed
· Re-introduce a SIPP permitted investment list - 93.6 % of advisers agreed
· Revisit flexible drawdown - 77.6% of advisers agreed
· 35% tax on all lump sums on death - 65.6% of advisers agreed
· Allow early access to pension commencement lump sums - 65.6% of advisers agreed
AJ Bell's Chief Executive, Andy Bell commented, “It is clear that financial advisers are in agreement with our proposals for reform and they feel that our suggested changes can only help as they encourage clients to think about saving and their plans for retirement.
Our proposals are intended as a series of measures that could be implemented quickly and without too much cost to the industry or indeed lost revenue to the Exchequer.”
Bell continues, “We would welcome the opportunity to discuss this in more detail with the Treasury and to provide them with a summary of our findings.”
Background
In January, AJ Bell revealed its seven proposals for pension sustainability with a view to re-engaging pension savers.
Chief Executive Andy Bell announced that he had written an open letter to the Treasury outlining a series of changes to the current pension regime.
Bell said, “The current UK pension system is viewed by many as inflexible, overly complex and in need of an overhaul to make it more attractive. If we are to re-engage the saver then these changes would take away some of the complexity faced by both savers and the industry as a whole.”
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