Research has shown that almost three-quarters of those aged over 50 had no plans to ask for guidance despite the new pension reforms that have just been introduced.
Tony Elliott, our Senior Tax Planner, warns that they could be missing out on the tax benefits available as part of the new regime and they may even be paying unnecessary tax.
“This month has seen huge change in the world of pensions, and now anyone aged over 55 has more freedom than ever before when it comes to getting access to their pensions savings,” said Tony.
“Retirement savers can now withdraw multiple lump sums without having to buy an annuity or open a draw-down account.
“But it’s clear that even though this flexibility opens up a whole new range of opportunities for those nearing retirement, many people are unaware of just what the changes meant for their individual circumstances.”
Tony said research by LV= had shown that 12 per cent of those questioned didn’t even know the changes had been introduced, and 33 per cent said they didn’t understand what the reforms involved.
“It’s vital that anyone over 50 starts to think seriously about their future and how they will use their pension pot to its best advantage, and the most sensible way to proceed is to take professional advice to explore all the options available.”
John Perks, managing director of LV= Retirement Solutions, said: “Those approaching retirement now have even more choice as to how they take their pension income.
“This is a great opportunity for pension savers, and the men and women who take advantage of these new rules could significantly boost their income.”
Tony Elliott, Senior Tax Planner