Pension Freedom has reinforced the idea that we are able to retire early, as pension funds are accessible from age 55, but comparatively few people can really retire…
The earliest you can start taking money from your pension is 55 years old.
You can use these funds to help supplement your salary……
When we sat down with pen and paper and created Martin-Redman Partners our vision was to be clear, fair and not misleading. This ethos runs through everything we do from start to finish, including how we charge fees, what we charge and when we charge it.
The Telegraph on Saturday had an article that made me wonder just how shallow some people’s thought processes are. The original article is here: http://www.telegraph.co.uk/pensions-retirement/financial-planning/will-no-one-help-cash-pension/, but for the TL:DR people, (Too Long: Did not Read), the thumbnail summary is:
Various people are complaining that IFAs will not help them to transfer their final salary money
The law requires those with £30,000 or more in “protected benefits” to seek professional advice.
The two examples quoted by the Telegraph had different levels of wealth with the poorest example only having £100,000 and had only been told “No”, and the richer with £500,000 complaining only of delays.
If you go and buy a pension now the basic charges are likely to be 1.5% or less, with many occupational schemes offering at least one fund with a total cost of 0.75%, albeit without any active advice. Although this represents excellent value for “New Customers Only”, people with older schemes are not so well served.
Research by the Citizens Advice Bureaux reported in The Telegraph on 25th August 2016, suggests that one in three people taking money from their pensions funds are just putting it in the bank. (See the original article here; http://www.telegraph.co.uk/pensions-retirement/financial-planning/thousands-withdraw-pension-cash--then-leave-it-in-the-bank-earni ).
Ros Altmann has appeared in the press last weekend in the Observer and has posted up on her website an argument for the abolition of the existing “Triple Lock”, replacing it with a “Double Lock”. (See http://pensionsandsavings.com/pensions/triple-lock-for-state-pensions-could-move-to-a-double-lock/).
Quite a number of potential clients feel that financial advice is both too expensive and unnecessary. Sometimes however, paying a small amount for advice puts you in a much better position overall. How that plays out for the individual depends very much on circumstances, so imagine the nightmare that will have engulfed this under-advised individual.