Just One In Five Are Aware Of Far-Reaching 'A-Day' Reforms, And Most Don't Plan To Review Their Pens

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IFA Promotion launches www.takepensionaction.co.uk and free guideto show how changes could affect you

Research* from IFA Promotion, the organisation promoting the benefits of independent financial advice, shows that sweeping pension reforms due on 6th April 2006, so-called “A-Day”, have clearly not penetrated public awareness. The new rules are set to affect most pension savers one way or another, yet just one in five (21%) UK adults know they are even happening, and, 64% of pension savers have no intention of reviewing their arrangements before A-Day.

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.

David Elms, Chief Executive of IFA Promotion commented: “The fast-approaching A-Day reforms offer many people new opportunities, while others will need to act ahead to avoid losing out. Yet most people remain completely oblivious to these changes, meaning millions could lose out by taking no action.”

The relaxation of pension investment rules offers some exciting new possibilities, from residential property to fine art, but these will only be appropriate for a relatively small proportion of investors. There are also reforms 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 6th 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:

For further information please contact:

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 10,000 firms of independent financial advisers across the UK and is sponsored by 31 leading financial institutions. In 2004, over 440,000 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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