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
For future information about avoiding a pension scam checkout 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 are financial advisers specialising in pension transfer and pension release. We have been doing this for many years now, long before the recent Pension Freedom changes came into effect.

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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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.

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I found your service first class with friendly polite staff. All questions I had were answered. It was nice to be with a company that did not hard sell. Most refreshing.

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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

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

A very professional, yet friendly and personal service. I would strongly recommend your company to anyone interested in pension release. Many many thanks to all your staff for a service second to none.

Mr HFC, Belfast

I looked around the internet for some time, all I looked at was very confusing to me. I then found Grove Financial and found it very easy to read and take in. I sent an email with a question to see the response. I had a perfect response in plain english. I was very happy to carry on with the excellent personal service.

Mr JB, Bristol

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.

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