Pensions: The press, the myths and the reality

iStock_000016454287_ExtraSmallOne of the joys of the internet and social media is that it allows people to exchange their views more freely. However, this new found freedom can allow misinformation and urban myths to be treated as fact; nowhere more so than when pensions are being discussed. We thought we’d have a bit of fun, by analysing some of the comments posted in response to online articles, in various national newspapers. “With Annuity rates around 5% what incentive is there for people to pay into ...

Pensions: New alert issued over early access pension ‘liberation’ schemes

iStock_000011714357XSmallA warning was issued this week to pension savers tempted to access their pension before the minimum age of 55. HMRC (Her Majesty’s Revenue & Customs) has warned about vulnerable consumers being targeted by “unscrupulous” firms, offering early access to pension funds, often claiming to have found a loophole in legislation. Speaking this week, HMRC said categorically: “There is no loophole”. According to HMRC pension ‘liberation’ schemes work in a number of different ways, including transfers to company schemes, loans back from the ...

Income Drawdown: 120% more flexible, 100% easier

Barnett WaddinghamIn his second guest blog of the week, Andy Leggett of Barnett Waddingham looks at the imminent changes to Income Drawdown and highlights the risk of immediately increasing your income: Income Drawdown is a fantastic product for some. One of its central features - being able to vary the level of income you take from your SIPP (Self-Invested Personal Pension) - gives fantastic flexibility. We all like flexibility: it gives us more options and a sense of ...

Pensions: 45% of people have never reviewed their pension

A new survey has shown just how few people ever review their pension and that an increasing number are turning to friends and family for financial advice. Whilst the research, carried out by the investment firm Baring Asset Management, showed that the majority of people, who have not yet retired, recognised that it was important they understood how their pension was invested, a large percentage of people had never actually reviewed their pension. Attitude to risk Have you reviewed your pension?...