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Pension Rule Changes from 6 April 2015

28 March 2015

From 6 April 2015, the way that people can access their Defined Contribution pension benefits is changing.

Pension savings, jar of coins

In the March 2014 Budget the chancellor announced a radical change to the way members of Defined Contribution schemes would be able to receive their pension from 6 April 2015. This will have an impact on the retirement plans of millions of people that have pension benefits in their current, or previous, employers' schemes and personal pension schemes.

Flexibility and Choice

The changes have a significant impact on the way Defined Contribution benefits can be taken and care should be taken to ensure the pension funds are used in an appropriate way. The choice to take your pension in a manner that suits you gives you greater flexibility, but also brings greater complication. In particular you should consider the tax implications of any choices you make.

A leaflet is being sent to all members concerning the legal changes to Defined Contribution schemes. Please read the leaflet carefully and get independent advice before making any decisions about how to use your pension contributions.

Other Considerations

Final Salary (or Defined Benefit) schemes are not affected in the same way by these changes, there is more information in the leaflet.

There are also changes to the taxation of death benefits are 6 April 2015, there is more information in the leaflet.

Take Care

Please be wary of scams which are expected to become more prevalent as these new flexibilities come in to force. If it looks too good to be true then it probably is.