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6 for the 6th ABI advice on making the right pension choices

With the new pension freedoms starting next Monday, 6 April, the ABI is reminding customers of six things they need to know:

  1. April 6 is not a deadline - there is no rush to make big decisions about your retirement income.
  2. Your pension pot may have important features affecting your choices - if you have a Guaranteed Annuity Rate then the Government wants to make sure that you take financial advice before accessing your fund as you could end up worse off. You can speak to the free Pension Wise service to find out more about where to find an adviser.
  3. Beware of pension scams – criminals looking to tempt you with too good to be true offers that could result in you losing some or all of your pension cash and facing a tax bill.
  4. Think about any tax implications. Taking your entire pot or large parts of it as cash may mean you have to pay more tax than you expect.
  5. You have choices, but there is help available in making them. Contact the Government’s free and impartial Pension Wise service who can help you consider your options.
  6. The ABI’s ’Your Retirement, Your Choice’ information helps you understand your choices.

Louise Hanson, Director of Advocacy, at the Association of British Insurers, said:

"Don’t panic, don’t rush and don’t be tempted to dash for the cash. April 6 is the start of a new pensions era and not a deadline to act. The only sensible advice is to take time to fully consider your options and contact the free, impartial Pension Wise service."

Last updated 01/07/2016