“While we welcome the additional flexibility available to savers, our poll showed that many advisers are as concerned as us that the new rules could be reversed sooner rather than later if we see a non-Conservative government come into power. It is of major concern that a non-Conservative government could decide that the changes have gone too far, too soon and therefore scrap or seriously water down the changes. If this happens we risk destroying the public's faith in pensions,” says Andy Bell, Chief Executive of AJ Bell.
“The political uncertainty could create a 'buy-now-while-stocks-last' mentality, with savers feeling they have to act quickly before the rules are changed. This could result in many people encashing their pensions regardless of whether they have a genuine need for the money. Political pressure and a fear of change have a history of driving knee-jerk reactions when it comes to savings.”
Advisers who attended the AJ Bell Investival appear to share these concerns. When asked to vote via an app specially created for the event
- 64% did not believe the new rules would last more than a year after the May General Election, if there was a change of Government; and
- 60% said they felt the new pension flexibility rules have gone too far
Notes for Editors
- AJ Bell's second annual investment conference, the Investival, took place on Thursday 20 November at London's Millbank Tower. Full details and videos of the event can be found at www.ajbellinvestival.co.uk.
- Since March's Budget, the Government has outlined a series of pension reforms which are to come into force from 6 April 2015.