New research has found that those approaching retirement are desperate to find out what options will be available to them, with the query topping a list of five key queries compiled by LV.
The firm said it has received high numbers of calls from clients who want to know how and when they can benefit from the greater choice of income options that will become available to them in April.
The enquiries dealt with highlight the fact that retirees are still not sure what the pension changes mean for them, which LV said emphasises the value of the FCA’s ‘second line of defence’ rules requiring providers to offer tailored risk warnings to clients seeking to access their fund.
The five top queries are:
• What options will be available to me when the Budget comes into effect?
• Will I be able to take my money as a lump sum?
• Will I be able to withdraw more money from my pension in April?
• How long will it take for me to access my cash?
• Will there be a charge for taking my pension fund as cash?
Steve Knight, chief operating officer of LV Life and Pensions, said with just under a month until the pension changes go live it is clear that many remain confused about their options.
“We always try to provide as much information as possible to savers, however before they make any decisions we always signpost clients back to their adviser or Pension Wise if they have no adviser.
“We see Pension Wise as a step towards advice as this could significantly improve outcomes for people, especially for those who want a level of flexibility and a guaranteed income and may not be aware that they can achieve this by blending solutions.”
Mr Knight added that although savers have clearly engaged with the idea of being able to take their pension fund as a lump sum, many quickly change their mind when they realise that they may have to pay tax on it.
“This clearly shows the need for the FCA’s rules to help ensure that clients do not make mistakes that cannot be undone.”
He added: “During these calls we often see the discussion move to focus on tax efficient ways that someone could drawdown their fund and we expect demand for drawdown products to increase post April.”