Flexibility and freedom may be the current pension buzzwords, but those people who are on the verge of giving up work are advised to consider their options very carefully
In recent years, the retirement income landscape has been transformed. Keeping your pension money invested and making flexible withdrawals is the “new norm”. But freedom doesn’t come without risks, and the Financial Conduct Authority has been looking into the danger zones created as a result.1 Quilter pensions expert Ian Browne highlights four lessons pension customers can take from the FCA’s Retirement Outcomes Review (Final Report, MS16/1.3, June 2018).
1. Take advice
“As you near retirement it is crucial to take advice. The FCA says non-advised customers almost always stick with their existing pension provider instead of shopping around. An adviser will help you find the best value retirement income product to meet your needs. Most offer an initial consultation at their own cost, so you can decide if their service suits you.”