According to a report in the Press this week, “Pension providers, advisers, regulators and the Government are not ready for reforms which, in less than six weeks time, will give people more freedom over their pension pots…” The Association of British Insurers also claim that missing details mean it is “impossible” to say the new freedoms will be available on time.
In an interview with pensions minister, Steve Webb, the Telegraph newspaper suggests that; “Savers waiting to cash in their retirement funds should “stay in bed” or “take the grandchildren to the seaside” when the pension freedoms take effect on April 6.” It goes on to say that; “The pensions minister advised the over-55s against rushing when the rules around pension withdrawals are relaxed in six weeks’ time.”
Commenting on these concerns FPG Partner, Tim Norris, said that; “Over-55s will be given unfettered access to their pensions. However, these freedoms are peppered with new and complicated rules, which could cost retirees dearly if misunderstood. We believe it is sensible financial planning to consult a Chartered Financial Planner so that personal, tailored advice is received and understood by retirees, prior to making any potential life changing decision.”
If you are unsure of the new pension rules, or would like to seek clarity regarding what alternative options will become available to you, please call us on 0800 731 7614 and ask to speak to Tim Norris or Alan Clifton.