Adviser > Individual > 2010 > The 2010 Age Change
The 2010 Age Change
And how Scottish Life
can help your business.
What's changing?
2010 Age Change deadlines
5 March 2010 – deadline for requests for retirement/external transfer illustrations.
15 March 2010 – deadline for submitting completed forms for purchasing an annuity/OMOs and transfers to external drawdown plans.
5 April 2010 – all clients must be in suitable pension arrangements by this date.
Help is at hand
Request our handy pack to find out more about how the change could affect your clients and the opportunities it offers you.
From 6 April 2010 the minimum age that pension benefits can be taken rises from 50 to 55.
This change could have a significant impact on the retirement plans of your clients as they may not be able to access their pension benefits when they want. Are your clients aware of this?
Act now before it's too late
For some clients the change in minimum retirement age may mean moving to a more suitable pension arrangement so they can access their benefits when they need them. This move into a new pension arrangement can take time.
The deadline date to make these changes is fast approaching, so it's important to take steps now to ensure all is in place for your clients before 6 April 2010.
Key cut-off dates for your requests
As a customer-focussed organisation we are putting in place
cut-off dates for receiving annuity purchase instructions, both
with us and via an Open Market Option (OMO), to give adequate
time for requests to be completed before 6 April. This will help
our customers to realise their retirement plans.
The deadline for requesting retirement illustrations for clients under 55 with existing Scottish Life plans is Friday 5 March 2010. And the deadline for submitting completed forms for purchasing an annuity/OMO for clients under 55 is Monday 15 March 2010. The forms must be received by our Customer Service teams by the 15th.
We are also introducing deadlines for requesting external transfers to another provider’s income drawdown plan for clients under 55. 5 March 2010 is the deadline for requesting external transfer illustrations and 15 March 2010 the cut-off for submitting transfer forms. The forms must be received by our Customer Service teams by the 15th.
For OMOs/external transfers we recommend you check with the receiving provider as they are likely to have their own cut-off dates for receiving the transferred funds.
Clients who will turn 50 after 15 March but before 6 April can still take their benefits/transfer to another company, provided we receive completed forms by 15 March.
We're proud of our award winning service and by putting these measures in place it will allow us to continue to provide the excellent service that you and your clients expect from us.
How to help your clients
To make sure your clients are in the most suitable pension arrangements, and to help you make the most of this one-off opportunity, you can:
Segment your client list
Review your existing client database and segment your customers by age:
- 49-54 year olds need to act now.
- Those younger than 49 years old need to consider reviewing their personal circumstances as they could still be affected.
Provide suitable and compliant advice
Use our planning tool to identify the key messages to target them with and the sales opportunities this presents.
Review each client's circumstances and pension arrangements.
Invite each of your clients to review their finances with you. Check
- they have the correct pension arrangements to meet their future needs or
- if they need to consider switching or consolidating their pensions.
Recommend suitable options
Discuss the options with your clients. These may include:
- buying an annuity
- moving into an income drawdown arrangement
- considering a phased income drawdown arrangement
- moving into a third way drawdown arrangement.
When recommending clients to switch or consolidate their pensions, you should make sure the new product meets the Financial Services Authority (FSA) requirements and guidelines.
Further information and support
We've created a comprehensive Instant Expert information pack to help you better understand what the changes mean for you and your clients.
The pack contains a sample client mailing pack that you could use as a template for your own mailing to contact some of your clients. The information is provided as an example so you should ensure the content of any client mailing adheres to your own compliance requirements.
Remember time is running out so act before it's too late! You can also
- Contact your usual Scottish Life representative or
- Call us on 0845 60 40 800 to request more information on the change and the opportunities it offers you and your business.
For professional advisers only