Is "A-Day" Really The End Of The World? One In Ten Think So

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• Armageddon, Armistice, A-levels? Just 16% of Brits recognise that “A-Day” refers to pension reforms...and most plan to take no action
• IFA Promotion launches www.takepensionaction.co.uk help-site and free guide to show how changes could affect you

A survey* from IFA Promotion, the organisation promoting the benefits of independent financial advice, shows that the sweeping pension reforms due on 6^th April 2006, so-called “A-Day”, have clearly not penetrated public awareness.  Asked to pick from five potential “A-Day” definitions, 84% shunned the option of ‘a day when annuity and pension changes come in’ and picked alternatives from Armistice Day (46%), to A-level results day (19%), and even Armageddon (11%).

IFA Promotion’s survey also probed whether people had heard of the imminent pension reforms, which are set to impact on most pension savers, and just 21% said they had.  More worryingly, of those who are aware, over two thirds (64%) of pension savers have no intention of reviewing their arrangements before A-Day. 

David Elms, Chief Executive of IFA Promotion commented: “This simple survey makes a forcible point: most people don’t know pension reform is even happening, let alone what it might mean for them.  As a result, millions could lose out by not reviewing their arrangements to take advantage of the changes.”

Worryingly, just one in four older retirement savers (over 50) have already reviewed or intend to review their retirement provision, despite generally having more complex and valuable pension arrangements than younger savers.  And only 19% of women with pensions intend to review compared to 25% of men. 

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A-Day’s pension simplification will also change the rules around contribution limits; protecting or transferring existing pensions before A-Day; the amount of tax-free cash you can take at retirement; and flexible annuity options. 

To help people consider which opportunities could apply to them, IFA Promotion has launched an interactive guide at www.takepensionaction.co.uk , with help tailored to users’ circumstances.  People can also call 0800 085 3250 to request a free guide to A-Day changes and details of local IFAs with advanced pension qualifications.

Elms concludes, “It’s telling that half (51%) of all pension savers who are aware of A-Day plan to review their pension in time for the April rule changes.  Like them, we believe an early review of your pension arrangements is vital, to ensure you leave enough time to make relevant changes where necessary. 

“While the changes are aimed at simplifying matters in the long-run, the immediate issue of how they affect each individual’s current provision is not a simple one.  An IFA who focuses on retirement saving advice is best placed to help you understand what steps you might need to take running up to April 6^th 2006 and also how you might be able to take advantage of the new rules.” 

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* IFA Promotion commissioned YouGov to survey 2276 UK adults in June 2005:

** Relates to pension savers only

For further information please contact:

David Elms                     Chloe Merriman/ Richard Winder

Chief Executive              Lansons Communications

IFA Promotion                020 7294 3681/ 020 7294 3641

020 7833 3131

    For expert comment or case studies from over 200 media-friendly IFAs, journalists should call IFA Promotion’s Media Services hotline on 020 7294 3682 or search online in ‘Media Services’ at www.unbiased.co.uk

1.  Independent Financial Adviser Promotion

IFA Promotion was established in 1989 to promote the value and accessibility of independent financial advice to the public.  It represents around 9,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. Over the last 12 months, over 530,000 consumers and businesses used IFA Promotion to find local independent financial advice.

IFA Promotion believes Independent financial advice should be:

• Affordable.  The option to take independent financial advice should be available, by right, to all - not just the wealthiest in society.
• Convenient.  IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.
• Transparent.  It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.

2.      Independent Financial Adviser Promotion’s sponsors

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