Pensions Costs

George Osborne has, from April next year, given people the right to access their pensions when they turn 55 rather than having to buy an annuity. However, pension companies will not be forced to apply these new rights.

In the event that companies are unable to release the cash, people can move their pensions. However, this might incur an exit charge.

Justin Modray, of Candid Financial Advice, is quoted by the Telegraph:

“I think many policyholders will be very surprised to be told, come April, that they can’t have their money and there will be a big backlash.”

As with all financial schemes, the devil is in the detail!