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Today marks the start of the pensions revolution not a deadline to act says the ABI

The ABI is urging people not to panic or rush into making decisions as the sweeping pension changes introduced today, 6 April, are not a deadline to act.

Yvonne Braun, Director of Long Term Savings Policy,  the Association of British Insurers, said:

"Today, 6 April, is the start of a pensions revolution, not a deadline to act. Don’t panic, don’t rush and don’t be tempted to dash for the cash without carefully considering your options. With the new pensions freedoms and flexibility comes responsibility, so the only sensible advice is to contact the free, impartial Pension Wise service who can explain what the changes could mean for you, and  your options."

People need to remember that:

  1. 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.
  2. Criminals may be  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. So ignore any unsolicited calls, texts or emails  and speak to your pension provider or Pension Wise.
  3. You should 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.
  4. 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.
  5. The ABI’s 'Your Retirement, Your Choice' information helps you understand your choices.

Last updated 01/07/2016