Are you being excluded from the full Pensions Freedom?

Many people are discovering that their pension company is not providing the full flexibility of the Pensions Freedom

The new Pensions Freedom was introduced in April of this year, and apply to anyone over the age of 55. (See Ray’s Blog August 2015)

Sadly, a growing number of pension companies are announcing that they are cancelling plans to offer the full Pensions Freedom, whilst other companies are delaying introducing the new flexible benefits.  We have discovered many  companies simply do not have the capability of providing the flexibility.  Basically, many pension companies do not at present have the systems in place or wish to spend the millions or the fund selection to provide the flexibility of benefits. 

In June of this year Friends Life cancelled plans to offer savers the new flexibilities, sparking concerns that other firms could follow suit by delaying or refusing flexible access.

Now Aegon, one of Britain’s biggest pension firms, has shelved plans to offer savers “bank account” access to their pension plans for at least a year.

When the Chancellor, George Osborne first made his statement to Parliament, he could not have made it any clearer.  People should “be able to access as much or as little of their pension as they want and pass on their hard-earned pension to their family’s tax free”  People should be “free to choose what they do with their money”.

Those companies who are either withdrawing their plans or delaying providing the Pensions Freedom are blocking savers from having the flexible access to their retirement funds.  They are simply being offered the options of cashing in their entire pension and face a hefty tax bill, or swap the whole fund for an unpopular lifetime annuity. 

My view is that people should be free to choose what they do with their pension funds, and we should provide them with the most flexible and cost effective pension plans to enable them to do it.

As Independent Financial Advisers, directly regulated to the FCA, we are able to provide a full review of all pension plans and to give advice and recommendations to clients on those pension companies which offer the full range of Pensions Freedom flexible benefits.

If you wish to discuss your retirement plans, then please contact us.