Pensions  

Pension calls steady, but expose misunderstandings

Pension calls steady, but expose misunderstandings

Fidelity Worldwide Investment has not seen a surge in demand for information about the pension reforms, with head of retirement Richard Parkin claiming this could be a good sign.

Mr Parkin said: “The bank holiday was just the start of the new rules and it is pleasing in some ways that we did not have a mad rush as it may mean people are properly researching their options before making these important decisions.”

However, the calls made had exposed some misunderstandings about the changes, he said, adding that customers looking to withdraw their entire pots were not fully aware of the tax implications, with most proceeding after these implications had been explained.

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Fidelity Retirement Services took more than 1300 calls in the week before the new pension rules kicked in, but only received approximately 150 calls over the Easter weekend.

Background

This comes after it was revealed that people with older pension pots using providers including Aegon UK, Aviva and Prudential may have to pay a transfer fee to move into a newer pension before using the flexibilities.