Pension chaos set to continue

The uncertainty dogging the British pensions market is likely to continue for the next five years at least, according to a financial services expert.

14:43 05 August 2005

The uncertainty dogging the British pensions market is likely to continue for the next five years at least, according to a financial services expert.

Steve Bee, head of pensions strategy at Scottish Life stated: "It clearly looks like we are just about to enter another five-year period of turmoil, where fundamental pension issues are once again thrown up in the air, resulting in further radical changes at the end of it all."

He pointed out that Britain is just about to come to the end of a prolonged period of uncertainty and change for pensions, with retrospective changes to the tax legislation on pensions coming into force next year and called for a "bit of breather" before any new changes are introduced.

Mr Bee added: "Its going to be challenging enough, I think, for all those affected by retrospective taxation to be advised in good time, without us having to worry about how it will all be amended by the next wave of legislation."

The Scottish Life boss made his comments on the UK pension market after pensions minister Stephen Timms said in a recent interview with The Times that a radical overhaul of UK pensions, including incentives to work past retirement age, would be completed by 2010.

A report by the Pension Commission is due out at the end of 2005 and will feed into a government consultation document with a view to implementing further changes to the UK pension system.