Article preview: The introduction of pension freedoms in April 2015 was accompanied by concerns about the dangers of so much flexibility being offered to pension savers. Would savers draw too much from pension pots? Would this money be ‘blown’ on extravagant purchases, leaving savers bereft in the later stages of retirement? As it turns out, the reality of pension freedoms has, for the majority of savers, been a story of responsible and cautious withdrawals. The latest official figures show, whilst the number of flexible withdrawals from pensions continues to rise, the average amounts taken each time are relatively low. However, there are still concerns about the retirement outcomes for a large number of pension savers, who might need extra support in order to make better choices.
New rules to improve retirement outcomes
This 929 word blog post explains the new Financial Conduct Authority consultation on ‘investment pathways’ for non-advised investors using pension drawdown, aiming to save consumers around £25 million a year. Includes comments from Christopher Woolard, Executive Director of Strategy and Competition at the FCA and Steve Webb, Director of Policy at Royal London. Written on 28th January 2019.
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