UK - The £1.4m lifetime limit will lead to a flood of new business for consultants and IFAs as executives seek advice ahead of A-day, PMI delegates were told.
Towers Perrin employee benefits consultant Tilly Ross claimed that management of benefits against the cap would not be easy for individuals – and this was good news for those working in the industry.
She said: “Executives are beginning to ask what the cap means in practice and starting to realise they have complicated decisions to make. There is the option to try to save as much as possible before A-day so they get under the wire but remuneration committees will have to be convinced of justifications for a quick raise before this is agreed.”
Ross said the coming months offered an opportunity for pension professionals to take advantage of the provision of financial education for executives.
She said: “Important things to remember include who is making the decisions on what executives will do going forward and when these decisions are going to be made – there is not much time before A-day.
“There is a need to be flexible – answers for executive saving may lie outside of pensions – and to consider how provision fits with that of employees at the company in general.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers