Following the Pension Reform
The Financial Conduct Authority (FCA) plan to change pension regulations following the Pension Reform this year, to ensure that the opportunity for scams and mis-selling from financial advisers is nipped in the bud. Whilst scams don’t appear to be rearing their head unusually, the FCA are taking the necessary precautions to protect pensioners from serious losses.
It’s the pensioner’s choice
The Pension Reform has been well received by pensioners, with more than 200,000 taking up the offer to access their pension pot early.
Now there is no requirement to purchase an annuity, which provides an income for life, pension holders can effectively choose how to spend their pension, from reinvestment to simply splashing the cash.
Irreversible losses from pension fraud
However, a relaxation of pension withdrawal rules could open up a can of worms when it comes to fraud opportunities.
“Increased opportunities to choose how to access pension savings offer many benefits to consumers, yet also present greater risks of irreversible losses from pension fraud and scams,” FCA
The FCA, Britain’s financial watchdog, want to make sure that pensioners are given accurate advice regarding future pension planning, detailing all their options, whilst steering clear of the promotion of high-risk investments where pensioners could get duped into losing their life’s savings.
Work with a trusted adviser
Scam companies target vulnerable pensioners who don’t understand the financial markets.
A professional financial adviser, regulated by the FCA, will be able to ensure all your options are explained in detailed and the pros and cons are weighed up, specific to your situation.
Ensure before any decision is made, that you have:
- Fully assessed the risks involved – investments can go down as well as up
- Considered the rest of your retirement – is there enough income left for the future?
- Spoken with a financial adviser to ensure your plan is sustainable
“Darren’s expert advice I trust wholeheartedly and subsequently would recommend him to anyone.” Dr T Wright
Dental & Medical Financial Services have been trading for over 25 years. Our clients trust us to provide excellent and impartial advice suitable for their own situation. Call to speak with Darren, specialist and independent financial adviser.
Tel: 01403 780 770