23 June 2015

Ammo Kambo, Divisional Director and Chartered Financial Planner at Brewin Dolphin, said: "It is right to see the industry lobby government over this important issue. Many consumers are still not aware of their implications and the risks that they may be taking. Staggeringly, our research shows that 57% of 55-65 year olds have said they would be unlikely to seek any financial advice on whether to withdraw a lump sum from their pension, potentially losing five years of income. While a 'customer control' mechanism could stop people making a tragic mistake, those who take professional advice may end up with a far larger income in retirement. Government guidance does not take into account the entire wealth of a saver - including property and other assets. Professional help is likely to leave pensioners paying less tax and making more of their cash."

Brewin Dolphin's exclusive research recently showed important key findings around pensions freedom:

Key Findings:

Of those who knew the size of their pension pot the average size is over £163,000

48% expect their pension pot to last them more than 10 years

16% would still use their pension pots need to pay off debts

Only 6% will invest their pension in gold, shares or bonds

46% will rely on money in an ISA or other savings for their monthly retirement

24% will rely on selling their home/down sizing

23% said they would put their pension in a savings/bank account

57% said they would be unlikely to seek financial advice on whether to withdraw a lump sum from their pension.

Please see the Brewin Dolphin website for further information on pensions and how long your pot might last:

https://www.brewin.co.uk/insight/financial-planning/explore-how-ready-your-pension-pot-is-for-retirement

-ENDS-

The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No Director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents. Any tax allowances or thresholds mentioned are based on personal circumstances and current legislation which is subject to change.


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