Commenting on the announcement on pension reform by HM Treasury, Jamie Jenkins, Head of Workplace Strategy for Standard Life, said: "This is great news for savers. Today's announcement sets out a clear and positive commitment to making greater flexibility in pensions a reality. We recognise the challenges the government has faced in giving people greater choice when they retire, while putting the right framework in place to ensure they are supported, and that tax revenues are protected.
"Although some restrictions will apply, overall we believe these are practical measures which will help people plan for the future. It had been mooted that changes may be made to the ability to take tax free cash. The government has today committed to maintaining tax free cash and as a trade-off, introduced a £10,000 annual pension contribution limit for anyone of retirement age who uses the new flexibility.
"For most people this restriction to the annual contribution allowance is a much better outcome. The £10,000 annual contribution limit is significantly higher than most people who are automatically enrolled will pay. Few people will be impacted."
"We support the announcement today and look forward to implementing the changes for April 2015. People now have a clearer picture of how they will control their retirement savings and how they can harness this new freedom and choice to meet their long-term financial needs. It means pensions are set to become an even more attractive choice for savers. As one of the leaders in the defined contribution and drawdown markets, we will continue to work with advisers and our customers to help them understand and make the most of these changes."
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