Thursday 28 February 2019

Pension Freedom And Choice: Four Years On....


Four years ago, George Osborne introduced pensions freedom and choice, which turned the retirement savings market on its head. Given the pace of change, it is hardly surprising that there would be a number of issues emerging, which eventually would result in regulatory intervention by the Financial Conduct Authority (FCA). Amongst other things, the FCA has found consumers sticking with their existing provider, seemingly unwilling, or more likely, not knowing that they can switch their provider, in order to obtain better results. Weak competitive pressure and low levels of engagement with independent advisers are particularly acute in the non-advised Drawdown market and the regulator is rightly focussing on a package of measures to help address this.

To illustrate the point, 94% of consumers who access their pension pots without taking financial advice accept the Drawdown option offered by their existing pension provider, compared to only 35% of advised customers*. This illustrates the huge potential benefits people can receive from seeking independent advice.

Come to the experts – enquiries@pipllp.co.uk or visit our website www.pipllp.co.uk or telephone us on 0113 202 9529.