Readers may remember the pension freedoms announced by George Osborne in 2014. These became effective on April the 6th this year. The fanfare accompanying the announcement and indeed subsequently is often set against the backdrop of pensioners sat in Daimlers or on Yachts having drawn all their money out and lavished it on some frivolous purchase.
The reforms promised that over 55’s would have access to their pension cash as they pleased whether it was the full amount or in small payments. Or indeed it could be left invested. The choices on offer appeared staggering, always bearing in mind that there are tax implications for taking large sums.
But what is the reality? It appears that blocks are being put in the way by large pension providers to people trying to access their money. Companies are concerned that the amount of money that could be potentially drained from their holdings would make them vulnerable to collapse.
In response the providers are putting in place restrictions that prevent savers from having bank account like access to their money. These restrictions include long delays, high charges, misinformation or just saying no to that type of service.
Mr Osborne’s proposals are now in danger of being sunk by the pension industry’s commercial interests. While some companies are clearly keen to capture business and compete in the new world of accessible, flexible pensions, other providers, mainly the large insurers that for decades profited under the old regime, are dragging their feet. If you are feeling trapped by what is happening with your pension, Blacktower can help you. We have enormous experience in dealing with providers and can offer ways of transferring your money, in lots of cases to other providers which are tax efficient and with the freedoms you would hope for. We can plan for you an individual response that suits your needs.