How safe is my pension

The FCA has said it remains in most people’s best interests not to give up a defined benefit pension, which pays a secure, indexed income for life.Concerns have risen that some advisers are encouraging transfers by using doubts over the security of company pension funds.

Others have warned that employers were stoking interest in transfers, by offering to pay transfer advice costs for members.Pensions rules require those with defined benefit scheme rights worth more than £30,000 to obtain advice from a regulated independent financial adviser before they can transfer, but can you be sure that the advisor has your best interest in mind or is being driven by large commission incentives?Savers who withdraw regular chunks of cash from their pensions risk £13,500 being gobbled up by expensive funds over their retirement money Mail today reveals how insurers are hitting loyal customers with hefty fees when they try to use the pension freedoms to dip into their pots.In most cases, insurers offer to move savers’ cash into a small range of investment funds — unless the customer makes a special request.

But few savers realise there is a huge difference between the charges on the cheapest and most expensive plans.f a pensioner’s pot is fed into an expensive fund by default they could also run out of cash up to five years earlier than if they switched plans.Campaigners warn that savers face a new pensions scandal — and have called on the Government to intervene.

Posted on by CCKeith in Uncategorized

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