Yet another pension provider has decided to stop individuals from accessing their pension, under the “pensions freedom “rules unless they have sought financial advice. The company offers a range of pension products but refers clients to advisors for complex products such as income or flexible drawdown.
However those customers who do not wish to take financial advice will have to withdraw their entire pot of transfer it to another provider, adding further complications and probable costs.
The pensions freedom announced in April this year (which we have previously talked about here) gives retirees the option to cash in the entire pot at the time of retirement. However the regulator and the industry feel that this may lead to poor outcomes and many insist or recommend the importance of taking before deciding what to do.
Derek Pearce, Partner and IFA at Poole Townsend says, “It may be that taking all your pension at once is the right this to do, but whats wrong with getting some independent advice before making such a big decision. The advice may cement your thinking but it also might highlight some areas that you have not given consideration to. Making a decision is fine, making an informed decision is better”.
A recent study by Unbiased.co.uk found that up to 58% of savers have never taken professional advice.
Derek says, “people should understand the importance of advice, it should be tailored to your needs. Some people will need complex planning while others just a quick chat and simple straight forward planning”.
These decisions could involve thousands or even tem of thousands of pounds, surely spending some time getting advice is worth it?
For an initial talk to an experienced IFA why not give us a call. first appointment is always free.