Media > Press Releases > Archive > Scottish Life launches comprehensive 2010 Age Change support for IFAs
Scottish Life launches comprehensive 2010 Age Change support for IFAs
23 September 2009
Scottish Life, the pensions specialist arm of the Royal London Group, has produced an "instant expert" support pack, including case studies, a planning tool and client-facing material, to help IFAs maximise the business opportunities generated by the impending change to the minimum retirement age.
From 6 April 2010, the minimum age at which pension benefits can be taken will jump from 50 to 55. (Retirement at earlier ages will still be possible on the grounds of ill-health and for certain 'special' occupations.)
This raises significant planning issues for IFAs who have clients currently between the ages of 49 and 54, as this group will have the option to access their pensions restricted if they don't act before 6 April 2010. Although it is a challenge for these clients, the change creates opportunities for IFAs to demonstrate the real value of their advice by ensuring their clients are not caught out by the change.
Scottish Life's support material gives IFAs the tools to help them identify the relevant individuals and communicate the changes to these clients. And for one lucky IFA requesting this material there will be the prize of a lifetime - a trip to South Africa in the summer of 2010.
Chris Peart, Individual Business Marketing Manager at Scottish Life, commented:
"We want to help IFAs maximise the opportunity this change presents by giving them the appropriate tools.
"We have created sample letters and an unbranded client leaflet, so that IFAs can use the material to target clients within the relevant group. We've also created a simple planning tool on our website, to help IFAs identify the opportunities, key messages and solutions to discuss with their clients.
"As there is no transitional period, those currently between the ages of 49 and 54 may find that access to their benefits is temporarily restricted post 6 April 2010. People who have partially crystallised their benefits, for example those in phased income drawdown plans, won't be able to crystallise any more funds until they are at least 55.
"To ensure clients aren't caught out by the change, IFAs need to identify those who are in the relevant age group; review the finances of these individuals, to establish whether they are likely to need access in the short term to their pension fund; and ensure they are in a pension plan that allows them to receive benefits in the way they want.
"By identifying clients who could benefit, IFAs can demonstrate the value of their advice and also generate additional revenue for their business."
The change to the minimum retirement age is a result of legislation in the Finance Act 2004. This introduced the concept of a 'normal minimum pension age' which was initially set at 50 from 6 April 2006 (A-Day), with an increase to 55 from 6 April 2010.
Further information regarding the support offered is available at www.scottishlife.co.uk/2010
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For further information please contact:
Scottish Life
Alasdair Buchanan, Head of Communications
0131 456 7133
Chris Peart, Individual Business Marketing Manager
0131 456 7226
Polhill Communications
Sally Biggs
020 7655 0520
Editor's Notes:
Scottish Life was founded in 1881 in Edinburgh as a proprietary company, becoming a mutual company in 1968.
On 1 July 2001, Scottish Life demutualised and transferred its business to The Royal London Mutual Insurance Society Limited. Scottish Life is a division of Royal London and is the specialist pensions business within the Group, providing individual and group pensions to the market via intermediaries.
Scottish Life and Royal London's other intermediary businesses are based mainly in Edinburgh where 1,170 staff are employed, with 710 working in other parts of the UK and overseas.
Royal London Group, is a specialist financial service provider. Its businesses focus on those sectors of the market which value quality propositions, operating through a number of brands:
- Scottish Life - UK pensions market
- Bright Grey - UK protection market
- Scottish Provident - UK protection market
- Royal London 360° - offshore investment markets
- RLAM - fund management
- RLAS - life and pensions administration
- Fundsdirect / Ascentric - funds supermarket; Wrap platform
Royal London also distributes life and pensions products through Abbey's national branch network.
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £33.5 billion. Group businesses serve around 3.6 million customers and employ 2,840 people. Figures quoted are as at 30 June 2009.
