The new pension legislation was implemented yesterday and the majority of life offices and financial advisers are back at work today.

It looks like clients have been working our advisers hard and perhaps going direct to pension providers too?

I spent about 30 minutes trying to get through to a genuine pension specialist provider for a client who has retired (over the age of 65) to obtain up to date pension options based on the new upgrade that was only available today. I’ll try again tomorrow.

I also had a phone call just over a week ago from a 44 year old guy who wanted to access his pension fund. He’ll just have to wait another 11 years.

I think we all need to slow down and consider what a pension fund is really for. Is it the provider of your long term income in retirement? Does your pension fund provide your spouse or partner with long term income security? Is your pension now a legacy asset for your family too?

Although the new legislation allows you to draw your pension fund all at once (subject to tax) is this the right thing for you to do?

The problem is that once you have drawn your pension fund and spent it what do you do next? After you have drawn your money and paid your tax it’s not possible to change your mind.

I think now would be a good time to reflect on your options and think about what the best use of your pension fund could be. Take guidance. Take good independent financial advice from qualified and experienced advisers.

Let’s all slow down, think about your situation and the best use of your pension assets. Then decide what to do when you understand your options and the implications of your choice.

If you take your time it may even be easier to talk to pension providers, guidance givers and IFAs in a few months.

 

Steve Speed

Originally written 07/04/15