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.

The Winners
For many this greater flexibility was a great thing. Either providing them with an immediate cash injection to their finances, maybe to clear unmanageable debts, or simply wanting to take control of their pension fund investment or to ensure their loved ones would inherit their entire pension.

  • 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.

The Losers
Others lost benefits, they paid unnecessary and unexpected tax bills and left nothing to provide for their retirement. Worse still, many have been the victims of scams and lost all or most of their life savings. Early pension release certainly isn’t advisable for most people.

  • 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

If you follow these five steps, you won’t be scammed:

  1. Check that the firm you are taking advice from is FCA regulated. You can easily look them up on the FCA register
  2. 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
  3. 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
  4. 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
  5. And be careful, if the investment advice sounds too good to be true, it probably isn’t true. Only invest in FCA regulated investments

Recently reports have been circulating that there are an increasing number of costly pension scams operating in the UK since Coronavirus hit. When considering your options for pension release, always ensure you conduct due diligence during your research, and only share details of your pension with companies authorised and regulated by the Financial Conduct Authority (FCA), and clearly displaying their reference number. For more information on how to protect yourself, please visit The Pensions Regulator’s guide to Pension Scams

Need Advice?

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 specialise solely in Pension Transfer and Pension Release retirement services.

We were established in 2007 so have many years of experience successfully helping 1000’s of individuals. Some of them we advised to transfer their pensions and some of them we advised to leave their pensions where they are and not transfer them.

So why not Get Started Today and receive your free Information Pack.

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Testimonials

When I made my initial enquiry via the Grove Website I received a response within 30 minutes. I realised straightaway that I was dealing with a highly professional operation. From beginning to end my case was handled with utmost speed and courtesy. I would highly recommend your services to anyone thinking of releasing their pension.

Mr CB, France

This was the best decision I have made. I cannot express how helpful Grove Pension Solutions were. They go the extra mile to ensure you receive the best service. Their staff are very knowledgeable, professional and friendly, not something other companies offer these days.

Ms JM, Glasgow

from the point of initial contact right the way through to what was an extremely painless and satisfactory final outcome I was treated with courtesy, politeness and kept informed of every stage. My requests for any further clarification are treated with great patience and understanding.

Mrs HB, Newcastle Upon Tyne

This was the best decision I have made. I cannot express how helpful Grove Pension Solutions were. … Their staff are very knowledgeable, professional and friendly, not something other companies offer these days.

Mrs JM, Glasgow

Definitely I would recommend Grove Pension Release to anyone as they give personal and friendly help to people who need help, where other companies don’t.

Mr MG, Stockport

Your staff were very helpful from the start and very professional in their approach to what is a complex field. I would recommend your services to anybody.

Mr AS, Oxford

….what can I say. This company has been a breath of fresh air. I fully recommend any one considering any form of financial planning to contact Grove Pension Release. In plain English, those people are “NOT” cowboys. Thank you for all your help.

Mr EG, Bedford

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!

Mr RM, Swindon

Thoroughly recommended, nothing to much trouble, always there to give advice, always dealt with the same person at all times. Very glad that I used this company.

Mrs JA, Queenborough

GROVE SUPPORTED CHARITIES

Grove actively support the following charities and institutions

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