6th April 2015
Pension investors can now access their savings from today but the pension minister Steve Webb has warned people there is nothing magical about the 6th April and not to rush things.
Those aged over 55 with defined contribution pension arrangements can now theoretically access all of their pension money , a tax free lump sum with the rest subject to their marginal rate of income tax.
However some pension providers may not be offering the full set of strategies available under the reforms and some investors may need to transfer to other firms under the reforms.
The Lib Dem pension minister Steve Webb, who has previously said that he was relaxed about what people did with their money including buying Lamborghini sports cars, is now warning against rushing into a spending spree.
Webb, speaking to the Guardian, said: “There is nothing magical about 6 April. I think there is a case for waiting and seeing if you can. You don’t have to rush this. Wait and see what products become available. If you are in a position not to make a decision about your money on 6 April, I suggest you don’t.
Many pension companies are open to field calls from people hoping to access their pension cash. However some smaller providers may not be able to offer all the types of calls.
The Association of British Insurers, which represents the big pension firms, has also warned consumers not to “panic or rush into making decisions” and to be on their guard against potential scams. The changes were announced by the Chancellor George Osborne in last year’s budget.