Pru chief: Don’t lose out on SIPPS

When the SIPPs pensions are introduced next year and the complete overhaul of Spanish property investments through this kind of method are then paved away, there could be slights misgivings next April. This kind of pressure may then come from employees losing out on their surprise pensions and the surprise benefits that they receive.

To simplify company pension schemes is the new rule brought about by this SIPP development pension plan. This will be introduced on April 6, 2006, and that the aim of this legislation comes in two-fold: to make the pension system less complex and to encourage greater pension investment. With this new method comes many tax-free inducement schemes, including the idea of buying a second home in Spain or other safe and suitable countries to your liking and purchasing these properties through a SIPP pension plan. In a personal survey, this is what the pension giant, Prudential UK, found out:

Almost half, around 47 percent, of the senior executives at companies are not really prepared for a turnover of pension plans.

Only 14 percent claim to be definitely ready for a complete overhaul of pension plans since 1908.

Quite surprisingly, only 13 percent of company bosses are not really sure if they are prepared for such a day to come by.

The research also indicates that a lot of company executives, particularly 62 percent, have “little or no understanding at all” of the new changes in pensions, let alone the implications of these to their employees. On the other hand, a measly 8 percent of company bosses are sure to understand what the pensions are all about.

According to corporate pensions director of Prudential UK Dave Harris, just too many companies are just unaware of the changes that they expect to have on April 6. “They should be able to handle these changes now if they don’t want to explain to their staff what just happened.”

Posted on: Spain

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Pru chief: Don’t lose out on SIPPS

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