Page 44 - Phonebox Magazine May 2016

One of the cornerstones to the pension freedoms introduced by George Osborne in 2015 was that people should be able to make decisions for themselves. At the time, Mr Osborne stated “(existing) Tax rules around these pensions suggest pensioners can’t be trusted with their own pension pots. I reject this view”
At the time, many critics disputed this view, pointing out the lack of nancial expertise most people have and pointing out the general level of apathy in the nancial arena by many people. Perhaps the most obvious example being the reluctance the public have to move to a better bank account. Anecdotally it is said you are more likely to get divorced than change accounts.
With this in mind it is interesting to see the latest gures released by the Financial Conduct Authority (FCA) on the retirement income market*. In the period in question (July–September 2015), of those that purchased an annuity, only 36% went to a new provider rather than staying with their existing one. Bearing in mind the number of
pension and annuity providers, it is quite a slim chance that your current pension provider will o er the best annuity rate.
What is particularly interesting is that of those purchasing an annuity, only 37% took nancial advice, almost identical to the percentage who moved to get a better rate.
If you would like to discuss or review your own retirement plans then please call us. Initial meetings are without charge 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.
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Finance Matters
Apathy still reigns after pension freedoms
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44 Phonebox Magazine | May 2016
A6 Investment Ad 2015.indd 4 10/02/2015 16:26
* Retirement Income Market Data Report produced by the FCA
July – September 2015
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