Can Cashing In your pension pot early be costly?
What Are Your Options?
According to the BBC's sources, many people might be making a poor financial decision by releasing some of their pension pot into cash.
According to the Financial Conduct Authority, pensioners could receive 37% more retirement income every year by investing. This is as opposed to cashing in early.
It has been proposed that consumers should have access to information packs that are designed to give clear guidance.
Since reforms were introduced in April 2015, often referred to as the 'Pensions Freedoms' we have seen a large increase in the number of people seeking advice on their pensions.
You are allowed to access your pension pot from the age of 55.
However, This might not always leave you with a good deal. The Financial Conduct Authority has expressed its concerns for the welfare of those accessing their pension pots.
Is It A poor financial decision?
According to the FCA, choosing to release some of your pension into cash could increase your annual income.
This does, however, come with its risks.
As it stands there many complicated charges involved with releasing some of your pension and keeping it in cash early.
What Help Can I Get?
The choices that became available through pensions freedoms have been seen as quite popular with many people.
However, with these freedoms many are being expected to make more difficult financial decisions than before.
Here at IEP Financial we have created a Key Facts Guide about pensions freedoms.
We also structure informative financial review sessions to workers in their 50s on what they could do with their pensions.
You can download your FREE guide here.
If you have any questions about your pension, please do not hesitate to call us on 01273 208813
You can read the full article by the BBC here ➙ "Cashing-in pension pot 'may be costly"
Information Source: https://www.bbc.co.uk/news/business-44640877
How We Can Help You
Pension Advice
Due to the nature of pensions, both in their importance and, in most cases, complexity, we strongly recommend seeking pension advice from one of our advisers.
We at IEP Financial use the whole of the market to make sure you achieve the highest possible income in retirement.
Final Salary Pension
There has been huge interest from people with Direct Benefit pension arrangements in transferring these to a Defined Contribution arrangement that they can then use to take advantage of Pension Freedoms.
We understand this can be a little daunting and so we’ve put together a summary to help you understand the sorts of things you need to consider carefully before deciding if transferring your DB benefits is right for you.
Reviews From Our Clients
“Tim Jones has assisted us with finding the best pension scheme for our individual requirements. He has been professional, helpful and prompt at all stages and I would not hesitate to recommend him. I was most impressed with his recent presentation to our staff and for fielding all questions that came his way. It reassured our team and time was given to each person to discuss their individual circumstances too. The advice to date has been invaluable.”
“Like many SME’s, we had known about work place pension obligations for a while but for a variety of reasons had not yet got round to preparing for our staging date in 2017. Tim from IEP made it all very easy for us and delivered a proposal that was easy to understand and cost effective. The presentation to our staff was extremely good and the aftercare service has been excellent. Tim has understood our needs and professionally delivered the right proposal to us. He also demonstrated commendable patience and a sense of humour in dealing with us; a SME with limited resources which needed to sort out its pension scheme within a small space of time!”
“Sussex CCC has had a longstanding and successful relationship with IEP Financial. It goes without saying that they were our first port of call when deciding who to guide us through our pension requirements. In February, IEP Financial directed us though Auto Enrolment. Patrick Spencer was our lead & was professional, knowledgeable and always on the end of the phone if we had any questions. We have successfully completed Auto Enrolment with no problems & would not hesitate to recommend IEP Financial to other organisations, looking for help with Auto Enrolment or indeed any other aspect of financial planning."
