An expert in retirement planning has claimed that the UK pension system is so confusing, even HMRC’s very own staff have trouble getting to grips with it.
Robert Graves, head of technical services at Rowanmoor Pensions, has hit out at what he refers to as the “continuing complexity” of UK pensions. Mr Graves says that steps taken to simplify the pension system have actually served to do the opposite, and members of HMRC’s staff are now unable to give adequate advice with regards to the rules and regulation surrounding retirement savings.
Mr Graves said: “We have known that pensions simplification has failed for some time. One of the contributory factors is that since the Finance Act 2004, which paved the way for simplification in 2006, every single Finance Act since has made changes to pensions law. This is coupled with the fact that problems are created by so much detail being contained within primary legislation”.
Graves added that: “We appreciate that costs have to be cut in the public sector but we urge the government to ensure HMRC pensions division has adequate resource not only to deal with the continuing complexity of pensions but to implement the changes they want to make to reinvigorate pensions”.
Please note, you can only utilise a QROPS if you are between the ages of 18 to 75; and are a non-resident British citizen, or intend to be within the next 12 months, or if you are not a UK citizen and are planning to leave the UK within one year.