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ABI launches campaign to help consumers understand their pension choices

  • Copy of Your Choice portraitIntroduction of sweeping pension reforms on 6 April is not a deadline, but the start of the pensions revolution
  • People urged to use Pension Wise
  • Warning about pension scams

The ABI today launches its ‘Your Retirement, Your Choice’ campaign to help customers understand their choices from the sweeping pension reforms that will start on 6 April, where to get guidance, and how to avoid being the target of pension scams.

Under the reforms, from age 55 you will be able to access all the money you have saved into your pensions pot, and not have to buy an annuity. Options include: taking the whole or part of your pensions pot as cash; keeping the money invested and draw a regular income from it, or buy an annuity, or a combination of these.

Louise Hanson, Director of Advocacy at the ABI, said:

"April 6 is the start of a pensions revolution, not a deadline to act. With greater pension freedoms and flexibility comes more responsibility to make the right choice. Don’t be tempted to ‘dash for the cash’, but take time to consider carefully your options – especially as rising life expectancy  means we can expect a longer retirement. The Government’s Pension Wise service should be your first port of call to help you understand your options, and make the right retirement income decision." 

Your Retirement, Your Choice aims to help you understand how the pension reforms may affect you through:

Change. Retirement is changing – make sure you understand what it means for you.

Help. Help is available through the Pension Wise website – it is free and completely impartial.

Options. You can take cash, leave it invested or buy a retirement product.

Informed. Make sure you get all the information you need to make your decision.

Caution. Beware of pension scams – if it sounds too good to be true, it probably is.

Enjoy. Saving and making an informed decision will help you enjoy your retirement.

Louise Hanson also warned of the increasing threat of pension scams:

"These reforms could make it open season for the criminals looking to cheat people out of their pension savings with too good to be true investment offers, or saying they can unlock the pension before age 55. Once money is transferred into a scam you could lose all your pension pot and face a tax bill. If an offer seems too good to be true, it usually is. If in any doubt, contact your pension provider or Pension Wise."

You can find out more by visiting www.abi.org.uk/yourchoice.

Last updated 01/07/2016