As per the new Pension Freedom reforms that were introduced in April 2015, savers now have more flexibility in the way they access the funds in their pension pot.
There are multiple options and choices when it comes to maximizing tax benefits.
Are you aware of all the choices you have?
Do you know how the new pension reforms can benefit you?
If you don’t, then now is the right time to head straight to Pension Wise.
What is Pension Wise?
On the 21st of July 2014, the Chancellor of the Exchequer, George Osborne announced that millions of UK citizens would now have the right to impartial guidance on how to utilize their pension pots after the new Pension freedom laws come into effect.
Following this announcement, the Pension Wise service was launched in Feb 2015.
Pension Wise is a completely free service backed by the government and manned by independent financial experts who will guide retirees on making the right decisions regarding their pension funds.
There are multiple ways in which Pension Wise can assist you.
- The Pension Wise Website is a comprehensive source of information regarding retirement finances. You can get detailed information about pensions, your choices and the tax implications of making those choices.
- You can schedule a face-to-face appointment to further discuss these choices ensuring that you are well informed and aware of the decisions you make.
- You can call them on 0300 123 1047 or use their web chat function to speak to a Financial Expert who will provide consultation on your doubts regarding pensions.
Benefits of using Pension Wise
If you are not fully aware of how the new Pension Freedom reforms would affect you, then it is better to seek impartial advice.
And there is no better place to get impartial advice than a government-backed agency.
It is free and it can help you in more ways than just provide information.
Disputes: Pension Wise can act as a mediator if you are involved in a dispute with a pension provider (Public or private) and have already tried to resolve the matter by writing to them. All you have to do is furbish copies of the initial correspondence you had with the scheme. The in-house pension specialists will then guide you through the best possible course of action.
Telephonic Guidance: As long as you are above the age of 50 and have a defined contribution pension plan, you can call Pension Wise on 0300 330 1001 between 8 am to 10 pm every day to schedule an appointment or a telephonic guidance session. You can also walk into the nearest Local Citizens Advice Bureau to schedule an appointment.
Impartial Advice: Unlike pension scheme managers who may try to sneak in a sales pitch between advice, the pension experts at Pension Wise will give you unbiased advice without recommending any service or product.
Scams: Since many people are unaware of how the new pension freedom norms would affect them, fraudsters are having a ball. There are many types of pension scams which target retirees. If you have received an offer for a free pension review or an overseas investment option in an ‘exotic’ location, then it may well be a scam. You can speak to the financial experts at Pension Wise before deciding on any further course of action. You may also check our article on how to Identify a Pension Scammer.
Prepare for your consultation
If you have booked a phone guidance session or have scheduled a face-to-face appointment with Pension Wise, then you must be prepared with some information for the appointment.
- Get the latest pension statement from your provider to know the value of your pension pot(s).
- Analyze your current financial situation and keep the details handy. You may need to discuss your current salary, your cost of living during retirement and whether you have additional savings or debts.
- Decide on how you wish to access the Pension Pot. Do you prefer a fixed monthly income or are you better off accessing small sums of money from the pot?
- Do you have any health conditions that may affect your life expectancy?
Remember, good advice is only a phone call away. Make use of it.