New pension freedoms are now in full force, yet some providers are still reluctant to grant savers fully flexible access to their pension pots, despite a reported unprecedented level of requests to do so.
Others do so with questionable constraints: requiring their customers to buy an annuity or withdraw the full fund, rather than offering sets of options.
In both instances, this stems from a reluctance to facilitate flexible drawdown UFPLS (uncrystallised funds pension lump sum) – leaving savers with a binary decision: stay or transfer your funds to another provider.
Take Time to Assess Your Options
This is clearly in contrast to the wave of excitement and resulting enquiries that April’s Pension Reforms has created. With savings rates remaining at historically low levels and a relatively upbeat forecast for the UK economy, the appeal of withdrawing cash for reasons ranging from investments, to debt consolidation or property purchase, is clearly widespread.
Excitement should clearly not be confused with hasty decision making however, and experts across the board will stress the importance of taking time to assess all options before investing. With pension investment in mind, nurturing savings over spending them will not necessarily narrow the range of fruitful investment opportunities in today’s market.
For those looking into their options and the potential for investment, Peer-to-Peer lending is becoming a popular alternative to more traditional routes. What has previously been one of the lesser known financial products on the market is now becoming a mainstream choice. Peer-to-Peer lending is not covered by the Financial Services Compensation Scheme (FSCS)
With Wellesley & Co, you could gain rates of return of up to 6.32% on a 5 year investment. When selecting investments through a Peer-to-Peer lending platform such as Wellesley, it is vital to know that your capital is at risk if a borrower defaults. The firm is Authorised and Regulated by the Financial Conduct Authority (FCA).
If you would like more information on the options available to you and your pension pot, please get in touch with our customer service team today on 0800 888 6001 or email [email protected]