Page 30 - Phonebox Magazine February 2014

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Finance Matters
Don’t fall prey to early pension release schemes!
One of the downsides that people sometimes quote regarding pensions is that you are unable to gain access to your funds until age 55. Personally I feel the opposite. The fact that you can not touch money that is set aside for your retirement, and use it before you reach that stage of your life, is all for the better.
There are certain circumstances where it is perfectly possible to take benefits prior to age 55, such as terminal illness, but such circumstances are rare. In addition, some professions (mainly professional sportsmen/women) have a lower age at which they can access their pensions. Unfortunately, however, we have seen a rise in unscrupulous ‘pension advisers’ targeting savers in order to encourage them to access their pensions prior to age 55.
This activity is known as ‘pension liberation fraud’ and can have a number of consequences. Sometimes the people involved are simply fraudsters who will take hefty fees and do not provide the benefits they promise. Others encourage individuals to use rules allowing money to be taken out of the pension scheme but fail to point out that these are ‘unauthorised payments’ and attract a tax
charge of 55%, thereby taking over half the value of their pension scheme.
A cross government initiative has been launched to educate the public about these scams and is backed by the FCA, HMRC, the Pensions Advisory Service and the Serious Fraud Office.
If you are contacted by a company offering this service, you should contact your usual financial adviser or seek a second opinion through an adviser you find yourself. Do not rush into any decision. Creditable, professional advisers do not contact people out of the blue offering to provide them pension benefits before age 55.
If you would like to discuss or review your own pensions then please call us. Initial meetings are without cost and we are happy to come to see you in the comfort of your own home. See our advert below.
This article does not constitute advice and should not be taken as a recommendation to undertake any course of action mentioned without consulting a relevant professional.
What would you like your retirement to look like?
A 65 year old male retiring at the end of 2012 would, on average, receive 56% less pension than in 1994, and a 65 year old female, 50% less.
The same research issued by Moneyfacts in early 2013 also shows annuity rates in the
UK have fallen in 15 of the last 18 years and the reduction was 11.5% in 2012 alone.
If you wish to review your pension arrangements or you are approaching retirement, why not contact Advison to see how we may be able to maximise the benefit from your retirement planning.
Our financial advisers will help you to:
• ensure you have a clear financial plan for the future
• provide protection and peace of mind for your family
• make the most of your hard earned savings and investments • save for your retirement
• minimise your personal tax liabilities
• protect your estate for your beneficiaries
...and give you access to ongoing advice and support
Speak to the experts...
Speak to Advison now on 01908 285690
www.advison.co.uk
Advison Ltd is an appointed representative of IN Partnership the trading name of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Tax advice is not regulated by the Financial Conduct Authority. Registered (England) No. 5009271
30 Phonebox Magazine
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