Worries over pension car crash

The Sunday Times warned of an impending car crash in pensions as pension providers struggled to adapt to the new rules that take effect in April 2015.

Many simply will not be able to offer the flexibility permitted under the new rules on existing plans. Scottish Widows, for example, said that half its 2.5 million pension plan holders would have to move to another plan to if they wanted to benefit from the new withdrawal flexibilities. And there could be long delays when people try to transfer.

We completely agree with the Sunday Times’ prediction. We reckon many providers of old plans are simply incapable of making the necessary changes. If you do want to use the new pension freedoms, the sooner you discuss your needs with us the better.