The biggest reform of pensions for almost 20 years is more than just good news for investors - it's the best they've ever had. So says James Brown, a Certified Financial Planner with Peacheys Wealth Management.

The shake-up of pensions on April 6 - known in the industry as 'A-day' - is good news as far as we're concerned, but even better for people saving for their old age.

Removing some of the most complicated tax rules on the statute book and replacing them with a single tax system for pensions will make life easier for all of us.

The changes include:

Non-taxpayers will still be allowed to contribute up to £3,600 to a private pension and get tax relief.

People who are member of a company scheme can also take out an individual plan - such as a stakeholder or personal pension - although the new single annual pension contributions allowance will apply.

Pension savers will be able to invest in residential property for the first time through funds such as real-estate investment trusts.

Savers are also entitled to tax relief on contributions worth up to 100 per cent of their annual earnings, as long as the investment does not total more than £215,000. The only other restriction is a lifetime pensions cap.

While this limit will be raised each year to £255,000 by 2010, most people will be able to pay in far less.

Pensions, of course, are never simple. But this is probably as simple as they're ever going to be made. They're going to allow far more flexibility and remove a lot of bureaucracy - and, going forward, make pensions much more attractive as tax vehicles.

My opinion is that the traditional pensions provided by insurance companies are going to be less attractive than the new style self-invested personal pensions (Sipps).

Clients can now separate the administration of their pension funds from their investment and have the best of both worlds at a very competitive cost - which was an issue in the past.

Stakeholder plans provide the base for saving, but Sipps offer a much wider choice of returns, allowing pension savers to invest in unit and investment trusts as well as individual shares. Sipps are no longer the preserve of the wealthy!

How much you may invest depends on all sorts of factors, including your age and what type of pension you have. But whatever you decide to do, one harmonised set of rules is a major step forward. Life will be much simpler.