The new financial year started on 6 April and, with it, new rules on pensions came into force. These changes allow for the over 55s to access their pensions either as income or a lump sum, to be spent however they wished.
The effect of these changes is expected to have a knock-on effect in the motorhome and caravan industry that is already resurgent in the UK.
The Freedom to Go campaign from the industry body, the National Caravan Council has already seen an increase of interest in motorhome and Campervan holidays from over 55s.
Freedom to Go polled 1,000 over 55s and 24% said they would consider buying a campervan, caravan or motorhome with their pension or at some point in the future to enhance their available leisure time.
Rachel Piggot, from the campaign said: “It’s great to see that the over 55s with disposable cash and time are looking for adventure in the UK. With fuel duty freezes, pre-election budget announcements have made UK ‘staycations’ more appealing than ever and holidaymakers love the freedom a campervan or motorhome offers.”
The changes to the pension rules also mean that the whole pension fund can be converted into cash in one go with the first 25% tax-free and the rest taxed as income.
In addition, smaller sums could be withdrawn as and when the investor likes, with the first 25% of each withdrawal free and the rest taxed as income.
Also, up to 25% could be taken tax free, and the rest could be used to generate a taxable income, either by drawing money directly from the pot or by using it to purchase an annuity to create a secure income.
Swift Group, the UK’s leading touring caravan, motorhome and holiday home manufacturer is celebrating an all-time, record-breaking season to date, with sales for the Group’s touring caravans, motorhomes and holiday homes significantly ahead of the previous season.
At the recent Caravan, Camping and Motorhome Show in February this year there were high sales levels of all products. Motorhome sales were also higher than last year with strong sales across all sectors.
New initiatives aimed at the first time buyer, and a dedicated advice booth providing all the help and advice a new caravanner could possibly need was as provided at the show, which proved to be an enormous success with a good number of visitors indicating that the caravan industry is clearly attracting new people.
There are real signs of resurgence in the caravan market, right from entry level to the top of the range.
With the changes in pension regulations this year, some people will be able to access more of their money which will enable them to afford a high ticket purchase, something they may not have been able to do before.