Government publishes response to consultation — freedom and choice in pensions

The government has published its response to the ‘Freedom and choice in pensions’ consultation. Individuals aged 55 or over will be able to access their entire defined-contribution (DC) pension flexibly. This will be underpinned by the ‘guidance guarantee’, which will be provided by independent organisations rather than pension schemes or providers. Transfers from private sector defined-benefit (DB) schemes to DC schemes will continue to be allowed, as will transfers from funded public sector DB schemes, subject to two safeguards.


  • Action points
  • Unrestricted access to DC pension savings from April 2015
  • Flexible access — permissive statutory override
  • Minor changes to trivial commutation and small pots
  • The guidance guarantee — a new duty on independent third parties
  • Transfers from private sector and funded public sector DB schemes allowed
  • Changes to the tax rules to allow new products onto the market
  • Anti-avoidance measures
  • Increasing normal minimum pension age
  • Government confirms 55 per cent tax rate on death too high
  • Useful links
  • Date for your diary

Click on the link below to read the Allen & Overy briefing.

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