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“Over 50’s must receive face-to-face auto enrolment advice”

 If you are aged between 22 and state pension age and earning above the income tax personal allowance (£7,475 in 2011/12) you will be automatically enrolled into a new workplace pension scheme at sometime in the next 4 years, unless you are already in a pension at work.

This could have a significant impact for everybody, but particularly for anyone over the age of 50. If you are over 50, you may think that the introduction of the new workplace pension scheme into which employees and employers are going to have to contribute is not really going to impact too much on your retirement plans.

However, we agree with Lord Oakeshott, the LibDem Peer, who has publically stated that People over 50 being auto-enrolled into a pension should be given one hour of face-to-face advice due to the increased risk of misselling.

Lord Oakeshott is more concerned about the interaction with state benefits, debt and scheme charges, but it goes much further than this.....

The automatic enrolment, which will happen every 3 years if you opt out, can cause major financial implications if

  •  Your pension pot is likely to exceed 1,500,000
  •  You have applied for Enhanced or Primary Protection in the past
  •  If you are considering Fixed Protection because of the imminent reduction in the Lifetime Allowance from £1,800,000 to £1,500,000
  •  If you take advantage of the new Flexible Drawdown pensions

Without proper advice you could end up in the situation of breaching HMRC rules and be liable to large penalties or reductions in benefits. Depending on the size of the employer this automatic enrolment could start as early as October 2012 which means that you should contact us as soon as possible to take advantage of our free one hour consultation and make sure that you are not unknowingly breaching HMRC rules.

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