Under current legislation, some of your clients can take benefits from their pension when they reach 50. However, on 6 April 2010, the minimum pension age will increase to 55.
That means if they don’t take benefits now, they could be at a disadvantage if they’ve made long-term plans based on taking tax-free cash or an income.
Which clients?
If you have clients aged 49-54 – that is, born between 6 April 1955 and 5 April 1960, or if you have clients who have previously selected a retirement age of less than 55 – then your advice could be particularly valuable. Even if they don’t want extra money now, they should consider their needs over the next few years.
Time is running out for clients…
- who want to retire before 6 April 2010 – it’s important that action is taken now to make sure everthing is in place in time
- in a phased retirement plan under the age of 55 who want to continue to take an income over the next few years
What can you do?
Now is the ideal time to speak to key clients, making sure the change in legislation doesn’t negatively affect them. It’s a great chance for you to make sure your clients:
- don’t miss out on valuable benefits now
- don’t leave themselves short for the next five years, and
- are in the right plan to meet their retirement needs over the longer term
You can do this by:
- reading all about the actions that should be considered now, in our leaflet
- prioritising those most in need of your advice
- getting a state pension forecast for your clients
- reviewing your clients’ existing arrangements to see if they’re on target to meet their goals
Act now
If any of your affected clients want pension income in place by 6 April 2010, act now to make sure everything is set up before the cut-off. It’s important they understand all the advantages and disadvantages of the different pension options to allow them to make an informed choice. A guide to your retirement options provides an overview of these.
How we can help you
Once you’ve decided which clients to target, use our sample letter text to get in touch with them.
For more information and to find out how to make the most of this opportunity, contact your usual AEGON representative.