Pension savers slow down during lockdown – expert advice needed as withdrawals decline | Personal Finance | Finance
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Pension assets, so long as they are the private kind, can be freely accessed from the age of 55. This is much sooner than when state pensions can be accessed, with the state pension age set to reach 66 by October.
When examining the figures, it was highlighted that the falls from March 2020 to April 2020 were bigger than the corresponding change last year.
Despite these surprising results, the ABI and other organisations expect that withdrawal rates will likely increase due to pent-up demand and as the financial need increases as the furlough scheme unwinds.
Ahead of this, the ABI urged those who are considering accessing their pension to seek impartial financial guidance from Pension Wise or regulated financial advice, and to ask their provider about their options.
Rob Yuille, the Head of Long-term Savings at the ABI, commented on how the outlook has never been more complicated.
As he detailed: “As Covid-19 struck there was a fear in the industry and in government that a pensions panic would hit, with mass pension withdrawals out of fear of stock market volatility and labour market uncertainty.
“So far, this concern couldn’t be more wrong.
“Instead customers have been holding off in large numbers.
“The pandemic is a harsh reminder of the uncertainty of how long your retirement might last, what it will look like and what it will cost.
“More than ever it has shown that when it comes to making decisions on your pension, you should get expert help.”
Pension Wise can provide impartial guidance on a whole host of private pension concerns but they are not the only organisation savers can turn to.
The Money Advice Service can also provide guidance on not only pensions but also savings, mortgage concerns and benefit claims.
Additionally, the government’s website is regularly being updated with the latest news on coronavirus and new financial legislation.
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