Now there is possible relief in sight. The Financial Conduct Authority (FCA) is poised to clamp down on greedy managers by insisting they cannot charge more than one per cent of the value of the pot, but the change will not come into force until next March at the earliest.
So, anyone cashing in or transferring out of their pension today could still have their pocket picked. The move will make it easier for people to drop their pension if they are getting a poor deal or make full use of their new pension freedoms to cash in their pot without penalty.
Before you take any action on your pension you should seek advice from a financial adviser to see how you may be affected. This could help you avoid the pitfalls of being overcharged for moving your money to a better position. You will also receive advice on the most tax-efficient position you can achieve. A simple review will also allow you to compare the benefits you are likely to receive from your current plan and the other options that are available to you.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
New data from HM Revenue & Customs reveals that the combined value of retirement transfers to QROPS fell to £740 million in the 2017-2018 tax year, the first period since the government introduced a 25% tax charge, with the number of pension transfers down to 4,700 from 9,700.
Your cash is earning nothing in the bank, in fact it’s actually losing its worth in all probability because of the corrosive effect of inflation. Even ostriches have to raise their heads at some point, if only to breathe.