Barclays clients planning for pension regulation changes

Investors will change the way they save for retirement in response to impending new pension regulations, according to Barclays Stockbrokers.

Research from the UK's largest online execution-only stockbroker reveals investor views on the forthcoming pension regulation changes. The research found that the increased flexibility offered by pensions as a result of the changes coming into effect in the new tax year will make them even more appealing than at present. Almost one third of respondents believed that the removal of the requirement to draw an income or purchase an annuity by a specific age will make saving with a Self-Invested Personal Pension (SIPP) more appealing. 

From next tax year, contributions attracting tax relief will be limited to £50,000, rather than the current £255,000. Despite this, 57% of respondents will contribute either the same amount or more in the new tax year. Interestingly, those who intend to contribute more will do so because they can afford it, rather than being constrained by the current restrictions for high earners. 

Catherine Penney, Vice President, Barclays Stockbrokers, comments: "It is crucial that investors remember the long-term importance of saving into a pension and ensure that they have adequate funds to provide for their retirement. By making regular tax-efficient contributions to personal pensions, including self-invested ones, and using ISAs in tandem with these to provide greater flexibility, investors can build up a savings pot to supplement their core pension. Personal pensions can also provide individuals with flexibility; for example, topping up earnings if they were looking to move to part-time working in the run up to retirement. SIPPs will be a key tool in the future to provide individuals with the flexibility to retire early and supplement their core retirement savings.

"With a SIPP from Barclays Stockbrokers, investors have the freedom to choose the investment products to suit their objectives. These include stocks and shares, funds, gilts and corporate bonds, Exchange Traded Funds (ETFs) and structured products. Along with our online dealing platform, we also offer in-depth research and trading tools to help investors make the right decisions for their investment strategy and risk profile."