Why Pension Freedom is costing retirees millions of pounds

There’s no doubt that Pension Freedom has helped many people retire early, as well as taking money from their pension in a way which suits them. It isn’t all good news though. New figures show that despite the increased flexibility, those people who buy an Annuity are still losing out on millions of pounds each year. Research reveals losses The research from Retirement Advantage, shows that in the two years since Pension Freedom started: 50% of people buy their Annuity from their current pension provider Not shopping around will cost pensioners £765 million over ...

How will the unexpected rise in inflation affect you?

How will the unexpected rise in inflation affect you?New figures show that UK inflation is now at its highest rate since November 2014. The data, from the Office for National Statistics (ONS), shows that the Consumer Prices Index (CPI) rose to 1.6% in December, up sharply from 1.2% in November. The Retail Prices Index (RPI), which includes housing costs, rose from 2.2% to 2.5%. Rising air fares and food prices contributed to the unexpectedly sharp rise, as the effects of the falling pound start to be felt. Reacting to the figures, Mike Prestwood ...

Retirement: 8 Annuity myths exposed

Hand drawing Myths or Facts arrows concept with marker on transparent wipe board. Over the past few years Annuities have received a bad press and to be honest, much of the criticism was fair. When George Osborne stood up and delivered his Pension Freedom Budget in 2014, many people predicted the end of Annuities. However, since then two things have happened: Annuities are still a popular option. In fact, latest figures show more people are choosing to use an Annuity when they retire than the main alternative; Income Drawdown Many Annuity providers ...

Retirement: Thinking of raiding your pension pot? 10 things you need to know

Thinking of raiding your pension pot 10 things you need to know 150pxNew figures from the Financial Conduct Authority (FCA), show that in the three months to September 2015, over 120,000 ‘cashed in’ their pension pot and withdrew every penny they had. For some people this will have been the right thing to do, for others though, it may well have been a mistake, which could leave them unable to make ends meet in years to come. So, if you are thinking of ‘cashing in’ your pension, what are the key things ...