9th June 2015
Many pension providers are still failing to offer the complete pension freedom that Chancellor George Osborne promised back in his Budget of March last year claims new research
April this year saw the launch of the pension freedoms, the biggest upheaval to the pension system in living memory, which abolished the requirement to buy an annuity.
Since then retirees were supposed to have unrestricted access to their pensions from the age of 55, however an analysis from retirement specialist My Pension Expert has revealed that this has not entirely been the case.
It found that some providers are refusing to grant retirees the access to withdraw from their funds as and when they see fit, while some of those that are offering the freedoms are charging customers large fees to dip into their pots.
My Pension Expert said that this has led to millions of savers either denied the freedoms that they have been promised or having to pay rip-off charges in order to gain access to them.
The group asserted retirees should ensure they get advice given the current retirement climate.
Scott Mullen director at My Pension Expert said: “Retirees shouldn’t have to put up with unhelpful and unwilling providers, that’s why I’d encourage them to seek advice at the earliest opportunity. That way an advisor can help them find a company that will allow them the granted freedoms in order for them to take their pension income in retirement in a way that meets their needs.”
Mullen added that an advisor would also be able to individually tailor a retirement strategy to suit the needs of the individual based on their attitude to risk and unique requirements.
He said: “They will consider lifestyle and health factors that could enable the retiree to qualify for an enhancement and can therefore guarantee that they receive the best rate available. They will also offer advice on the taxation of withdrawals, making sure that the retiree pays as little as possible and at the same time is fully aware of the longevity risks of depleting a pension fund.”