The perfect pension storm is forecast sunny

I read that the new pensions flexibility rules would result in £1.5 billion of transfers from occupational schemes.
Think nearer £15 billion.

Do you know your 5 biggest DC occupational schemes?
Get in front of the HR Director and Pensions Manager, right now. Get on the phone right now.

They won’t be offering the new DC/MP pension flexibility rules to retiring staff.
They won’t know how the rules work, but they don’t care; it’ll be a standard annuity and BAU for them. But, what about there members?

Master trusts?
Get real; what retirement options will they be offering post-6 April 2015? If you are an independently-minded IFA looking to secure the best and most flexible retirement options post-6 April 2015 (for your clients and your biggest DC occupational schemes), then the new pensions flexibility rules are your perfect storm.

AF3 permissions + pensions flexibility + DC occupational schemes = £15 billion market

Since the new pension flexibility rules were outlined in October, I’ve spent some time analysing the technical detail and the implications. I’ve seen all the pictures of lamborghini’s and read all about irresponsible savers from irresponsible providers and doomsayer pension commentators. I’ve deleted most of that; it’s whaffley bollocks.

Most of your clients are like you; you understand them. They think like you.
Most of your clients won’t be going out to buy a new £300,000 sports car. They’ve spent most of their lives working hard, protecting their families and saving for a rainy day (much like you and I).

Their pension wealth is important. They want to know how, when and what to use to best effect to secure their wealth, protect their family and save for a rainy day (with the odd bit ice-cream when the sun shines); why wouldn’t they?

You help them do that. They trust you. You understand their needs.
They trust that you’ll know how these new rules work. Most importantly, you’ll be able to explain what it means to them, in simple terms and in a context they will understand. They trust you to make sure you protect their wealth, have it ready for a rainy day and hopefully have a few ice-creams along the way, like paying off mortgage debt, or student debt or something equally useful…

I’ve spent some time analysing the technical detail and the implications of the new pensions flexibility for you and your clients, to save you the time. I’ve looked at all the details and compiled a comprehensive, accurate and easily accessible pensions flexibility module with essential reading and video narration. I know you’ll want to get up-to-speed as quick as possible, you’ll want a comprehensive and accurate reference, but also something you can get to grips with easily – because that’s exactly what your clients will want.

If you take a look it’ll give you some idea of the structure, a copy of the summary notes and the video narration

I’ll be writing about the new pensions flexibility rules throughout 2015, meantime here’s my initial thoughts.
5 things I’ve learnt about Pensions Flexibility

1. Pensions flexibility is not pensions simplification
You’ve seen and heard it all before. And it’s the same this time around. The biggest change in pensions since the chatham chest in 1590 and it is not that simple (on first glance). It took me a while to get to grips with it all. I’ve spent a good few hours on this and it takes a bit of time to digest. But, I’ve compiled the best bits from the best brains on all this and it has come together in a neat module. I decided to do both a fully comprehensive set of notes and a summary note.

2. It’s going to form a BIG part of the AF3 exam
If you thought AF3 was going to be easier from October, think again. We’ll be adding this new module to all AF3 exam students membership from July (when the new exam syllabus changes, but not before. I don’t want people confused as the new exam syllabus for October won’t start until end July 2015). I think I know what the first question in the AF3 exam in October is going to be; it’s going to be a double-charged MPAA and DB scheme accrual annual allowance question (which we cover in the case studies Q&A and which is included in the module).

3. You’ll have to know your Benefit crystallisation events
Your clients are going to be getting a BCE statement every year. Your clients are going to get told about their BCE’s. You’ll need to know them. You’ll need to know what they are post-6 April 2015, because they’ll want you to explain it to them, tell them what it means and tell them what they should do next.
What would you advise your clients to do with their capped drawdown now?

4. This is HUGE. It’s MASSIVE in a kind of BIG way
It will affect and take effect for EVERY SINGLE client you have on your books. It’s huge. EVERY single client should be getting a letter from you this January about pensions flexibility rules and the taxation of pensions act 2014. It is going to be relevant to every single person close to or past the normal minimum pension age. Crystallised or uncrystallised and BCE or FAD; if you don’t know what I’m talking about, you’d better – and soon.

5. Call yourself a wealth manager?
For the last 400+ years and until very recently, a pension died very quickly after you (or your wife). It either died with your dependant and/or through taxation or a combination of dying and taxation (the old saying about death and taxes was very relevant for pensions over the last 400+ years); it substantially wiped out your pension wealth; HMRC didn’t make any bones about it; pensions were NOT wealth management vehicles.

Stop. Reverse. Change. Forget the past. It’s going. It’s history.
400 years of history has now been deleted. Step forward the brave new world of pensions flexibility post-6 April 2015 with the taxation of pensions act 2014.
Wealth management is pension management. Nothing will touch it. Nothing will come close.

Pensions are the brave new world. Come and join the brave new flexible world – for your clients, their children and their children’s children sharing in the family pension wealth.

As I mentioned earlier, I’ve spent some time analysing the technical detail and the implications of the new pensions flexibility for you and your clients (to save you the time). I’ve used the best brains in the business. This comprehensive, accurate and easily accessible pensions flexibility module is now available. You’ll want to get up-to-speed as quick as possible, you’ll want a comprehensive and accurate reference, but also something you can get to grips with easily.

You can see more details about the expertpensions pensions flexibility module here

or you can purchase the pensions flexibility module and 12 months support right now:
[box title=”You can purchase the full module now” bg_color=”#66cd00″ align=”center” text_color=”#ffffff”]This structured and modular plan is designed to get you up to speed quickly in preparation for the new pensions flexibility rules in April 2015.

[button href=”https://expertpensions.co.uk/options/pensions-flexibility-module-12-months-post-6-april-2015-rules/” style=”flat” size=”medium” color=”#1081c4″ hovercolor=”#81d742″ textcolor=”#ffffff” texthovercolor=”#ffffff” icon=”chevron-right”]Buy It Now[/button] [/box]

How is it going to look?

Video tutorial: Introduction to pensions flexibility

https://www.vimeo.com/

Test Your Knowledge

In the full module you’ll get a CPD certificate which can be accessed through your membership, meantime try this very short example:
[watupro 63] [watuproplay-leaderboard quiz top 10 percent 63]