Specialist providers in the workplace can facilitate the pension freedoms’

butterflyThe most radical pensions overhaul in nearly a century is here and whilst the changes are a positive way forward for retirees, it seems many pension providers including occupational schemes are choosing to or are unable to offer the new flexibilities.

The Telegraph recently reported that ‘as many as five million savers will be unable to use their pensions like bank accounts after one of Britain’s biggest insurers cancelled plans to offer the Government’s new freedoms.’

The Daily Mail also reports [yesterday] that providers are ‘refusing’ withdrawals for fear of being sued for negligence in years to come’.

Jonathan Watts-Lay, Director, WEALTH a work – leading providers of financial education, guidance and advice in the workplace comments; “This is not surprising as I anticipated this might happen as providers including employers and their administrators are simply unable to facilitate the freedoms. There are no excuses as there are specialist providers out there such as WEALTH at work who can offer this and give employees access to the pension freedoms via the workplace.”

He adds, “Accessing your pension is only part of the story; a structured programme of financial education delivered in the workplace can help employees understand all of their retirement income options. Then at the point of retirement, regulated advice should be offered to all employees including tax planning. As a result of that advice, whether some form of income drawdown including cash drawdown, annuity or a combination of options is more suitable, WEALTH at work can provide that tailored solution. If employees/ retirees are to benefit from the new freedoms employers and trustees need to start having arrangements with suppliers who can deliver the full suite of freedoms rather than worrying about existing providers who can’t.”

Further coverage was gained in Personnel Today and Pay & Benefits.

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