Independent Financial Advice Delivered Wherever You Are In The UK

Via Zoom, Phone or In-Person at our Sutton Coldfield offices. Call Our Friendly Team Now 0121 355 4455 to Secure Your Retirement

Oaklands Details

0121 355 4455
info@oaklandswealth.com
12A Duke Street
Sutton Coldfield
West Midlands
B72 1RJ

Oaklands Wealth Management Ltd

Thinking of a pension drawdown without taking advice . . ?

New rules now apply if you choose pension drawdown but do so without taking advice.

The Covid-19 pandemic deferred many events of all sizes, from the Tokyo Olympics to millions of foreign holidays. One of the less prominent delays was a change to the Financial Conduct Authority (FCA) rules on pension drawdown.

Back in June 2018, the FCA issued a consultation paper following a two-year review of the impact of the Pension flexibility reforms introduced in 2015.

One aspect which particularly concerned the FCA was those pension owners who, having received various prompts to seek advice, decided to access their pensions through drawdown without taking advice.

The FCA found:

  • Many of these individuals were solely focused on taking their tax-free cash and paid little or no attention to the investment of the remaining funds to be used for drawdown.
  • Around one in three were unaware of where their drawdown money was invested. Many others only had a broad idea.
  • Some pension providers were “defaulting” non-advised clients into cash or quasi-cash investments at drawdown. As a result, one third of the non-advised users of pension drawdown held their entire drawdown fund in cash.

The FCA concluded that its findings “strongly suggest that a significant number of non-advised consumers are likely to hold their funds in investments that will not meet their objectives for how they want to use that money in retirement”.

The FCA’s proposed solution to this was to mandate pension providers to provide a range of “investment pathways” for drawdown funds, based on the client’s objectives for their pension pot.

The regulator also proposed that there would be specific warnings issued to those who held more than 50% of their drawdown fund in cash or cash-like investments.

The proposals were due to be put into force in August 2020, but the implementation date was put back to February 2021.

With cash returns virtually zero, the delay has potentially been costly for some non-advised pension owners, especially with the rebound of the stock markets in the last year

Looking at the performance of the FTSE 100 index of company shares we see a range of 5577 – 7129. If your pension was overly invested in cash during that time and not able to take advantage of the rebound by being appropriately invested in the stock market it’s value will be affected for the future.

If you are unclear where your drawdown funds are invested, take note of the FCA’s concerns and then take advice – the investment pathways will be a help, but they are not an advised solution, tailored to your circumstances.

As ever we’re here to help – why not set up a chat with our friendly advisors to discuss your retirement planning on 0121-355-4455 or email us on appointments@oaklandswealth.com

IMAGINE YOUR PENSION & SAVINGS 100% UNDER CONTROL…
Book a call

Similar articles

MEET OUR FINANCIAL ADVISORS

Click to view profile
Click to view profile

THINKING OF MOVING FROM YOUR EXISTING ADVISOR?

It’s easy to move on from another advisor.
We’ll handle everything.

All that’s needed is for you to sign some letters of authorisation and we’ll do the rest.

None of your investments will be switched into new funds until you’ve agreed with our recommendations and you’re fully happy with any changes we propose.

Book a call

7 KEY FEATURES OF THE OAKLANDS WEALTH MANAGEMENT SERVICE

British Standard BS 8577 Awarded Service

12 Month Money Back Service Guarantee

Lifetime Cashflow Planning

Risk Adjusted Personal Investment Portfolio

ISO 222222 Certified Financial Advisors

Monthly Fund Analysis

2 Investment Portfolio Reviews Per Year

A WORD FROM OUR CLIENTS...

“After great dissatisfaction with the service of major high street banking group I approached Oaklands to manage my pension and investment portfolio. They have provided sound advice on pre- retirement planning and achieved a good return on our capital as well now in retirement. The service offered by Helen and the team at Oaklands is second to none.”

Peter Worral

A WORD FROM OUR CLIENTS...

“Following my divorce, Helen took complete control of consolidating all my individual pensions into one product after advising me carefully what she considered the best product for my needs and risk profile. She explained everything clearly in language I understood, and my investment is achieving far greater growth than expected.”

Tracy Miah

A FRIEND FOR YOUR FINANCIAL JOURNEY...

THIS IS NOT A DIY SERVICE – WE TAKE FULL RESPONSIBILITY FOR SETTING UP YOUR PENSIONS AND SAVINGS. FOR LIFE.

No half measures. We don’t set it up then leave you all at sea. We manage your investments ongoing and hold ourselves accountable for steering you through your financial journey.

This phrase came from a client who said that’s exactly what we felt like to him, he said “you are like a friend or good neighbour who’s always got my best interests at heart.”

Whatever the reason you come to us we care. We really care. Like it’s our own money.

Tidying up bit and bobs of pensions and putting them neatly in a pot you have full control over.

Maybe transferring a final salary pension if your objectives are better met with your own pension.

Making sure you get all the tax efficiencies legally available to you to enhance your money.

Pointing the microscope on 3,000+ funds and finding the best ones to secure your retirement.

Get in touch
FEES
FEES
Find out more
OUR TEAM
OUR TEAM
Find out more
CLIENT JOURNEY
CLIENT JOURNEY
Find out more
ACCREDITATIONS
ACCREDITATIONS
Find out more