Pensions  

Is the 25 per cent tax-free cash leading savers astray?

Romi Savova

Romi Savova

Providers must intervene now and incorporate guidance into their service, offering their expertise on sustainable withdrawal rates and working with savers to develop a strategy that will give them more control of their pension. 

If we’re to avoid severe consumer detriment and pension poverty for millions in the long-term, we need to stop promoting 25 per cent tax-free cash to savers as the default option once and for all and caution against unnecessary withdrawals, starting today. 

Romi Savova is chief executive of PensionBee