Pension Freedom

A miss-sale in the making, (or why spouses need to pay attention to pension conversations!)

A miss-sale in the making, (or why spouses need to pay attention to pension conversations!)

Imagine for a moment that you are an unsuspecting IFA who arranged for a married man to receive a single life annuity when he came to retirement. Ten years later, the annuitant dies and the wife visits you and says,

 

“Where’s my pension?”

“You don’t get one. Your husband took a single life pension to maximise the income that came in during his lifetime”.

Pension Freedoms reframed as a tax grab and sticking plaster

Pension Freedoms reframed as a tax grab and sticking plaster

If someone had told me in April 2013 that by April 2015 people aged 55 or over could take all of their pension funds as cash, I would have said that they were mad. Many decades of history had cemented the status quo and providers had developed pension accumulation products that had only one outcome; an annuity purchase.

Plundering the pension pot; a new normal?

Plundering the pension pot; a new normal?

Both the press and the Financial Conduct Authority have been making a fuss about people accessing their pension pots under age 65, following the Pension Freedom reforms in April 2015. The Telegraph provides a typical article, (and user comments) here, and the FCA’s original press release is here, with the summary here, and the interim report here.

Pension Freedom, pension funds and bankruptcy

Pension Freedom, pension funds and bankruptcy

Back in the old days, (before Pension Freedoms), one of the standard arguments to pay into a pension, other than the obvious one of having an income in retirement, was to protect some of your accumulated assets from a potential bankruptcy. This was particularly important for sole traders, who may in a bankruptcy situation would otherwise lose everything.