[C]itizens Advice Allerdale is urging people in Cumbria to talk through their retirement finance options before making any big decisions.
Today is Pension Awareness Day, and the charity is encouraging people approaching retirement or considering accessing their pension to get to know their options and the risks by speaking to a Pension Wise guidance specialist.
Since the launch of new pension freedoms in 2015, people have more options to take their pension savings in a way that best suits their individual needs, for example by drawing money out of their pension early. Accessing your pension money early can have benefits but also brings a number of risks which many people aren’t aware of.
Pension Wise offers anyone over 50 free specialist guidance on defined contribution pensions, as well as providing pointers about the warning signs of scams and knowing how to avoid them.
Citizens Advice Allerdale has been providing Pension Wise appointments in Cumbria since April 2015. In that time the Pension Wise service as a whole has:
- Provided over 154,000 free pension guidance sessions
- Had over 5.3 million website visits
- Seen the ‘take your whole pension in one go’ page on its website visited more than any other page on its website
The popularity of the Pension Wise web pages about drawing money out of a pension reflects a trend identified by the Financial Conduct Authority as ‘the new norm’. They highlight that over a million pension pots have been accessed early since the pension freedoms came into force. It’s now twice as popular as using the whole pot to purchase a guaranteed income in retirement- known as an annuity.
Martin Telford, chief officer at Citizens Advice Allerdale, said: “Many people are making huge decisions about their retirement finances without talking through their options. Drawing money from your pension could leave you without a proper income once you retire or with an unexpected tax bill. It can also leave you open to scams.
“That’s why it’s important to speak about your pension with someone you can trust before making your choice. At Citizens Advice Allerdale, we want to make sure no one is alone in making important decisions. So this Pension Awareness Day, book your Pension Wise appointment online or by calling 0800 138 3944 ”
Citizens Advice Allerdale provides the service face-to-face across Cumbria. You can book your free appointment if you’re:
- Over 50, and
- Have a defined contribution pension
