Pensions Simplification ‘A’ Day (Appointed day) arrived on 6th April 2006 and brought  with it sweeping and radical changes for all pension plans –  whether occupational or personal.   From this date there is just one set of tax rules for all types of pension, with an individual Lifetime  Allowance (£1.8 million for 2011/12) and an individual Annual Allowance of £50,000 as of 6^th April  2011. All individuals are able to fund up to these limits, although tax relief will be restricted for high  earners. (Schemes already in existence before 6^th April 2006 needed to update their rules to allow  some of the new flexibilities.) Exceeding these limits will simply trigger a tax charge.   The ‘A’ Day rules made the majority of pensions much simpler and there were a number of key  advantages to the changes including the fact that Pensions are now much easier to understand &  Most people will now have greater flexibility in the size and timing of their contributions.  There were also a number of other changes including:-  • Early retirement age rose from age 50 to age 55 on 6th April 2010 • Full concurrency (i.e. being able to pay into any array of plans you wish), subject to the annual allowance • Wider investment flexibility • Up to 25% Tax Free Cash (Pension Commencement Lump Sum) is available from the majority of pension schemes. • The ability to commute a ‘small’ fund as a one off lump sum as opposed to having to draw a regular income – now set at a fund of £18,000 or less. • Flexible options at retirement when deciding to take benefits Why not contact us to review your retirement planning? About Pensions Company Pensions Pensions Simplification SIPPs (Self Invested Personal Pensions) Personal & Stakeholder Pensions