Following the April 2015 Pension Reform and associated new pension freedoms, financial institutions have reported a surge in enquiries from pension holders wanting to find out how they can best continue to invest their money and if is pays to withdraw funds now or keep them in the pension.
Do you need guidance on what to do next?
Now there is a choice
In the days following the Pension Reform in April 2015, financial firms received over triple the usual weekly calls and double the letters and emails. The large majority were from from pension holders wanting to find out more about their choices.
This is according to activity recorded from members of The Association of British Insurers.
Anyone over 55 years old now has the option to withdraw their pension funds from a Defined Contribution Pension Scheme and invest it where they like, subject to tax implications.
Help to make the best choice
Subsequently, at Dental & Medical Financial Services we continue to receive many calls from doctors and dentists asking us what their choices are and what factors need to be taken into account in the decision making process.
Here are the first things we would cover:
- How quickly is a new Return on Investment required?
- Do you need to be able to gain access to the original funds?
- What is your capacity for loss – i.e. do you have a reserve or a back up plan?
- Is tax efficiency a priority?
- What is your attitude to risk?
- Have you actually retired yet and if not, when are you planning to?
What choices are available?
There are many choices available. Some are suitable for most people and some are suitable only for a few. It really depends on personal circumstances and bespoke advice is essential.