Pension Freedom Frustration
The current situation is that if the pension pot is in excess of £30,000.00 and the pension owner wishes to access the funds they must get advice from an FCA registered adviser.
Nobody is happy
Situations are arising where no party in this situation is happy. The pension provider is bound by both the small print of the pension contract and the legislation or both.
The policy holder is frustrated by what they see is at best, poor regulation, at worst a conspiracy by everyone involved to deny them access to their funds.
Finally the adviser who is asked to sign a form to say he has given advice by a now frustrated and angry client who “does not want to pay to access his money“.
The original legislation was in place to make sure policy holders did get a better deal, yet the implication is now that somehow policy holders are being forced to pay for something they do not want. The fact is that prior to the new pension freedoms if a policy holder and simply taken the offer from their original provider in a very large number of cases they would have been seriously disadvantaged. The deal that was available by getting advice and using the Open Market Option would have been much better. The new freedoms empowers policyholders and the old protections frustrate them.
The ABI (Association of British Insurers) have issued anasking for a “customer control mechanism” to allow customers to take full control. The Telegraph has [thrive_toggles_group"]
Frustrated / Confused over the Pension Freedoms ? (Click here)
If you are frustrated or confused about your options then get a no obligation consultation with an FCA registered adviser.
However it is always a good idea to consider an initial consultation or discussion with and FCA adviser there may be options you have not considered that they can explain.