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The 10 common myths about pensions

It’s difficult to dispute that pensions have been on a radical journey over the course of a year. Big changes were announced during 2014’s Budget, changes that are now set to be implemented on 6 April 2015.

David Smith
01 April 2015

Over that time, pensions have repeatedly hit the headlines. Inevitably we’ve heard the rhetoric, with pensions minister Steve Webb infamously suggesting that people will be free to blow their savings on a Lamborghini if that’s what they want to do.

It’s easy to get lost amongst all this talk and discussion. Undoubtedly, there is an improved awareness of pensions, however, for many savers they are still a confusing and complicated subject. For example, do you need to stop work and retire to draw on your pension?

Answers to questions like that may surprise you and it is important to separate myth from reality when it comes to thinking about your pension. This will allow you to get a better understanding of what you can and can’t do with your savings in retirement.

Our latest factsheet dispels 10 common myths about pensions beyond just the changes introduced in 2015 – it lets you know why your existing pension plan may not be reform ready, for instance, and also why retirement isn’t just about having a well-funded pension. You can read our factsheet here.

We believe that after getting to the truth, your next port of call should be to review your pension arrangements. You can look at how hard your money is working for you; it’s best to know where your money is invested, how well your investments are performing and how much you are paying in charges. This is an area we can help you with here at Bestinvest, and we can also help you track down old pensions if you’ve lost them. Call us on 020 7189 2400 to find out more and to book a free, no-obligation pension review.

At Bestinvest, we spend every day helping people prepare for the future. We have a range of free guides and factsheets available that impart the expertise of our research team and financial planners, all with the aim of making sure our clients get the best from their investments and that they understand what they need to do when planning for retirement. You can see the guides we have available here, and if you want more information please be sure to call us on 020 7189 2400, request a call back or email us at best@bestinvest.co.uk

The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested. Prevailing tax rates and the availability of tax reliefs are dependent on your individual circumstances and are subject to change. This article does not constitute personal advice. If you are in doubt as to the suitability of an investment please contact one of our advisers. The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. Therefore we recommend that before any decision is made you receive regulated financial advice or seek guidance. Visit Pensionwise.gov.uk to find out more.