The Government launched “A Roadmap for Pensions Reform 2018-2023” in February of this year and announced a public consultation on certain of the strands within the Roadmap on 29 June 2018. The emphasis in media reports of the major initiatives included in the pensions reform has been on the tax relief available for private pension contribution, the age at which the State pension can be claimed and the introduction of auto-enrolment. The public consultation currently underway, which runs until 19 October 2018, is focussed on measures to simplify pensions and includes a broad review of Approved Retirement Funds (ARFs). A separate consultation on the auto-enrolment proposals is expected to commence in due course.
There has been little commentary on the funding limits currently in place for private and occupational pensions and whether these might be affected by reform. These types of change tend to follow in the aftermath of the more high profile developments but in many cases are highly relevant for individuals planning ahead for their retirements. They raise the possibility of creating a significant financial impact on pension provision.
In this article, Liam Lynch looks ahead to the possible shape of future pension reform and suggests areas where individuals should take action now to evaluate their current pension provision.