WHAT IS PENSION FREEDOMS?
The Government announced Pension Freedoms in the 2014 Budget and from the 2015/16 tax year, they allowed anyone aged 55 and over to take their entire pension pot as a lump sum, paying no tax on the first 25%, with the rest subjected to income tax.
Whilst there has arguably never been a greater choice for UK pension holders when it comes to accessing their retirement benefits, Pensions Freedoms also puts more responsibility on those entering retirement. We strongly believe those nearing retirement need greater support and access to personal, impartial advice to ensure they can make informed decisions about how to access these benefits, allowing them to lead the life they want to live both today, and in years to come.
Our Report
With this in mind, we surveyed 2,000 UK adults aged between 55 and 66, with private or workplace pensions schemes and with an annual income of at least £30,000 to see how they were making use of these new-found freedoms. The full findings of our report are available below.
DOWNLOAD THE FULL REPORT HERE:
Pension Freedoms Report 2019
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The Issue with Pension Freedoms
The financial advice industry’s reputation has been impacted by several high-profile episodes over the last year, as some financial advisers had given bad advice to pocket their ‘contingent fee’ on Defined Benefit (DB) pension transfers, where they are only remunerated if the transfer goes ahead.
Why we need Financial Advice
It is required that all DB pension savers must consult a financial adviser before transferring out of their scheme, unless the value of the scheme is below £30,000. As a result, our research found that 39% of pre-retirees that consulted a financial adviser overall were concerned their adviser might be incentivised to recommend a course of action that might not be in their best interests.
Financial Advice is a requirement, but impartial Financial Advice is need.
What makes Killik & Co different to other Financial Advisers?
We do not use contingent fees, but charge clients for unbiased and impartial advice, regardless of whether they transfer out of their DB pension or not. In a lot of cases, remaining within the DB Pension is the best course of action and ‘doing nothing’ can therefore be good advice.
If you would like to discuss your options please either:
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