The trouble with pensions is that once you're up to speed with them they go and change them again, writes Duncan Hannay Robertson CFPCM, co- chairman of East Anglia branch.
Neil MacGillivray, head of technical support at James Hay Partnership, provided much needed clarity on this important subject, in particular, protecting your clients' lump sum death benefits in a changing world. Neil has the art of making the complex understandable.
Because of the previous penal 82 per cent pension charge to residual pension funds, the stock recommendation was get tax-free cash out and exhaust the balance ASAP.
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Now there are more options. Neil provided permutations and "What ifs?" to consider including a useful comparison of the post-75 drawdown versus leaving the fund in place. Was this worth doing for clients and in some cases could 55 per cent be good value for money?
He also gave an extremely helpful technical examination of the use of bypass trusts and discretionary trusts, arguing that they should be considered for all individual pensions and some occupational schemes and should be part of a standard review for any clients with pensions and inheritance planning requirements.
Making the journey to Cambridge from Edinburgh in the middle of winter was no mean feat either and one that all who attended very much appreciated.
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