Winners & Losers
Who are the winners and losers with Pension Freedom?
2015 pension rule change had many rushing to cash in their pension nest eggs at 55, but was it a good idea?
The changes made in 2015 to pension regulations, allowed UK Pension holders aged 55+ to access up to 100% of their Pension funds and take far greater control of their money, including how and when they took their pensions.
Our research over the past 11 years covering thousands of clients has shown that Pension Freedom has been a great benefit for some, but sadly, not for others and certainly shouldn’t be seen as an easy way to raise cash.
- Got advice from an FCA regulated firm, which ensured they didn’t pay any unnecessary tax on the money they released early
- Only invested their pension fund into FCA regulated investments, thus ensuring they weren’t a victim of a scam
- Ensured any death benefits were paid to those they loved
- Benefited and got peace of mind knowing the advice they were given meant they were protected, by law
- Had time to read the report they were sent without being hassled
- Given the freedom to ask technical questions and have them answered in a way they understood
These people took their time to make the right decisions and have considered a wide range of factors.
They made sure the firm they were dealing with was FCA registered and had been around long enough to have the necessary experience required. They were protected by law and had rights of recourse.
- Anyone that transferred their funds to a high risk non-regulated scheme and saw the value drop, or even worse, were the victims of a scam losing their entire fund
- Took 100% of their pension without being told about the tax implications, then being hit with a significant and unexpected tax bill
- Cashed in all their pension without being given advice about the consequences; now having to rely on the state pension to provide for them during retirement
- Cashed in too much of their pension fund without advice, resulting in an unnecessary loss of their state benefits
Unfortunately, there are too many people who didn’t follow the simple steps outlined above and ended up wishing they had made better decisions.
How to avoid a Pension Scam
- Check that the firm you are taking advice from is FCA regulated. You can easily look them up on the FCA register
- Check how long they have been doing this for and ask what experience they have. Again, the FCA register will tell you their Status Effective Date
- Make sure the advice you receive is provided in writing and you are given time to digest that information, without being rushed or pressurised into making a rash decision
- Make sure you understand what you are doing and have been told about the downsides as well as the benefits – don’t be afraid to ask questions if you don’t understand. Even get a trusted friend or family member to look at the advice as well
- And be careful, if the investment advice sounds too good to be true, it probably isn’t true. Only invest in FCA regulated investments
For future information about avoiding a pension scam checkout The Pensions Regulator’s guide to Pension Scams
Why should I speak to Grove for Pension Release and Pension Transfer advice?
Grove Pension Solutions Ltd is regulated by the Financial Conduct Authority.
We have provided professional advice to thousands of people over the years.
Our service allows you to evaluate your Pension Freedom options without paying a penny. It’s only if you decide to go ahead with our recommendations that you pay a fee.
So why not Get Started today to receive your free pension freedom guide. If you read the guide and would like us to look into your pension freedom options, then simply complete the Enquiry Form at the back of the guide telling us what pensions you would like us to look into and post it back to us via FREEPOST.
You are under no obligation to go ahead with any of our recommendations if you don’t want to.
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I found Grove Financial Services to be an efficient and helpful company who I believe will do the best for their clients.
I cannot praise your company enough. From the initial enquiry form to completion the whole procedure was absolutely first rate. Your staff are a complete credit to your company and it is impossible for me to find anything further to add. Superb!!
The advisor explained everything and took time to make sure I understood what he had said. Service provided prompt information clear and easy to understand. Staff polite at all times. Everything they said would happen did in time frame told.
The advice I received was excellent. Each time I didn't understand something I made a phone call. I was never felt to feel like a nuisance (which I know I was!) and everything was simply explained to me. Thank you - what a wonderful team!
Found your service to be very professional. Your staff were polite and friendly ready to explain / clarify any query I had relating to release of my pension fund(s). Even went the 'extra mile' to update me via phone and text.
I did not think such a good service existed but it does. Grove customer service really does look after the customer.
The whole experience was comprehensive and informative. I was never put under pressure, and the whole procedure was conducted professional, with feedback. Everything that I was told would be done was done in the time frame that I was advised of.
I was in a situation and found that Grove Pension Release came to my rescue and appreciate everything they did for me.
You were the only company to explain it (advice) to me in a way I could understand ... I contacted several IFA's and they were all very unhelpful. ... I am delighted I chose Grove, very professional, polite company. Thanks so much!
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