Since the new flexible pension rules were introduced thousands of people over the age of 55 have accessed their pensions – the majority to access their tax-free lump sums, meaning the remainder of the pension is placed in drawdown.
This has left many people unsure how to proceed with the remainder of their pensions, especially if they are still employed and don’t yet need to access any more of the pension. It is likely that the funds will remain in drawdown, untouched until retirement, which is what has happened in nearly half the cases looked at so far.
Leaving the funds untouched for long periods of time without active management may mean they veer off track relative to the desired retirement plan and investors are being advised to monitor their pensions and adjust them as necessary. However, people sometimes just do not have the time or inclination to do this! And if they’re working full time why should they have the additional stress?
If you would like to discuss any pensions or investments for your retirement that you may or may not have accessed, and how active management could be beneficial, please contact us for advice.
Redwood Financial is one of the souths leading Investment, Pensions, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of pension and financial wealth planning, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email firstname.lastname@example.org to book a FREE Initial Meeting with us to review your financial planning needs.