In a new survey, the pensions giant, Prudential UK found:
- Almost half (47%) of senior executives at companies with a turnover of more than £1 million are not prepared for pension tax simplification next April.
- Only 14% claim to be fully ready for what many are calling the most radical overhaul of pensions since 1908.
- Amazingly, 13% of company bosses say they simply don't know if they are prepared for A-Day, as it is called in the industry, or not.
The findings also reveal that an alarming 62% of these company executives have ‘little or no understanding at all' of the new pensions changes, let alone the implications for their employees. Just 8% of senior management has a "very strong understanding" of the pension changes ahead.
Dave Harris, corporate pensions director, Prudential UK said: "Too many company executives are unaware of the minefield of changes awaiting them post A-Day.
"Unless they wake up to these now they could find themselves under increasing pressure from disgruntled staff faced with the prospect of losing superior pension benefits.
"For instance, scheme rules will normally need to be altered before higher tax-free cash can be paid or before the trustees can agree to something allowed in new legislation, but not in the current scheme rules," he added.
The period ahead of A-Day should provide companies with a clear opportunity to review their pension offering. But it could end up costing business dearly if they don't get it right for their employees, many of whom will want a sunbelt investment property.
Spanish Group ready for SIPPs property buyers
One organisation rapidly gearing up for the new pensions regime is SIPPs in Spain, a grouping of leading property and banking interests in Spain that currently attracting 40% of second home investment. Spokesman, Alberto Linares said: “We are already providing a one-stop service to ensure SIPPs pension money is invested in fully legal, bank-backed prime developments to produce a good return from vacation rentals and equity growth.
"Our banking partners have unlimited funds to provide special low cost mortgages for SIPPs property purchases in Spain and we are building a national network to sell, value, manage and let those properties in the most cost effective way.”
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