DP’s Financial Advice and Services note the importance of Pensions Act 2015
The increase in the state pension age to 65 years old left an estimated three million women thousands of pounds worse off.
According to John McDonnell, then-shadow chancellor, this change left the women without sufficient time to make the required changes to their lifestyle in order to accommodate the new legislation.
Labour’s manifesto sought to offer a compensation scheme for women born in the 1950s who are impacted by the change, which would have cost as much as £58 billion over the next five years. Average pay outs would have been £15,380, with the compensation capped at £31,300.
The importance of the Pensions Schemes Act is recognised by DP’s Financial Advice & Services, a professional independent advice company, in their piece for the Parliamentary Review.
Senior partners David Parkinson and David Parnell state that “since the Pension Schemes Act 2015, we have seen demand for our services increase by 50 per cent over the last two years. The challenge of meeting this huge increase in demand was to ensure that we maintain the highest levels of professionalism and customer service.”
They continue, that “overall, we see the Pension Schemes Act as a positive development, enabling consumers
to take control of their own financial destiny into retirement. There is now no reason
for consumers not to save for their own retirement with the additional incentive of,
potentially, passing on the wealth they built up to their children and beyond.”
Ultimately, they consider the scheme to be a highly beneficial endeavour, considering “the launch of 'NEST' (the workplace pension set up by government) helped many small employers as, for many life offices, the contributions would have been below their minimum levels. However, we feel that the role of NEST needs to be clarified to ensure that it does not seek to become a financial adviser.”
Whether the new Conservative Government chooses to review this legislation, with Labour's promise gaining a lot of press coverage during the campaign, remains to be seen.