Computer says No
Increasingly I 'm being told that the computer often says no at other pension providers, but one area where this is looking like a big problem is the proposed changes to benefits resulting from the government's plans on the abolition of the age 75 rules.
Transitional rules are already in place allowing unsecured income drawdown to continue beyond age 75, but already I'm reading press reports that thousands of pensioners are having to move to another pension firm to take advantage of this, as their existing provider's systems cannot cope with the change. Someone in their mid 70's really should not be having to go through this aggravation with transfer costs as well.
I'm also hearing pleas from some providers for plenty of notice on what the final rules would be - fair enough, but there must be a limit to how much time they need to get their act together.
These proposed changes are potentially great news for pensions, and SIPPs in particular, with greater flexibility increasing their appeal and that must be good news for our industry. It's a shame that chunks of our industry don't seem to be able to gear up to ensure we can all deliver these new benefits.
Back office systems and service should be the most important part of what we do as a pension provider. At Curtis Banks, we can guarantee that the computer won't say no, both on the current transitional rules and the new benefit rules when they come into effect in 2011.
This communication provides general guidance to financial advisers. It is not a full description of our products and services and more information is available on our website at www.curtisbanks.co.uk or by contacting us on (0117) 9107910. It is not intended to be read by clients or potential clients and any such persons should take independent financial advice before taking any action on their pension arrangements.
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