Almost three-quarters of over-50s are not currently planning to seek retirement advice after the government’s pension reforms are introduced in April, according to research by LV=.
This could result in people failing to take advantage of the tax benefits of the new pension regime and paying unnecessary amounts of tax.
From April 2015, over-55s will be given more freedom with regards to how they access their pension savings. Retirement savers will be able them to withdraw multiple lump sums without having to buy an annuity or open a drawdown account.
The report highlights the need to raise awareness of the upcoming pension changes and the government’s vehicle for providing guidance, Pension Wise:
- 33% of respondents didn’t understand what the reforms mean
- 12% didn’t know that the changes were being introduced.
John Perks, managing director of LV= Retirement Solutions, said:
“In just a few weeks those approaching retirement will have even more choice as to how they take their pension income. This is a great opportunity for pension savers and the men and women who take advantage of these new rules could significantly boost their income.”