Brits 'consider fixed protection pension transfer'

An increasing number of Brits could be considering pension transfer to fixed income schemes, according to Skandia. This is attributed to rumours the 50 per cent tax rate is due to be removed by chancellor of the exchequer George Osborne in the March budget. A reduction in the annual allowance is also expected to be implemented, which will negatively impact top rate taxpayers who are in a position to maximise their retirement income to a high level. It was specified people with a large pension pot who apply for fixed protection could increase their lifetime allowance to £1.8 million, provided they do so by April 5th - the end of the current financial year. This would mean they are effectively opting out of the national pension system as they would no longer make any contributions after this date. Individuals who take this action may be able to bring their retirement forward. Many people are not in a position to do so, as a report conducted by the Pensions Policy Institute for the National Association of Pension Funds found those who do not invest in the best pension deal for their needs could have to stay in employment until they are in their early 70s. Pension expert for Skandia Adrian Walker urged Brits to act now, as any proposed changes could come into effect when they are announced on March 21st, without necessarily having to be delayed until the end of the financial year in April. "It is interesting the high numbers who have already applied for fixed protection, as it is still early February. We normally expect to see a spike in these sorts of applications as tax year end approaches. The latest rumours surrounding the allowances are bound to have an affect and change people's behaviour," Mr Walker commented. Ashall Glover Financial Services, pension transfer specialists Posted by Jonathan Breen