Pension Wise is a new free impartial guidance service for those affected by new pensions freedoms
Under old pension rules those with a defined contribution pension could take a small lump sum but were required to use the rest of their pots to purchase an annuity.
New rules as of 5 April 2015 now allow people to access savings as they wish with much greater flexibility.
What is Pension Wise?
The Pension Wise service was created to help ensure that people are fully informed of the implications of accessing savings meant to support them in later life.
The service offers free impartial guidance for those affected by new pensions freedoms.
Pension Wise guidance specialists don’t recommend any products or companies and won’t tell you how to invest your money.
What are the new freedoms?
- Take your whole pension pot as a cash lump sum
- Use your pension fund to draw a flexible income
- Purchase an annuity
- Leave the pot invested
- Or a mix of these options
To find out more you can make a Pension Wise appointment.
Your Pension Wise appointment will give you the opportunity to:
- Receive an overview of your options.
- Have the pros and cons explained on each relevant option.
- Feel empowered to make an informed decision about your pension savings.
- Encourage you to think about your plans for later life and the relevant factors that need to be considered.
- If applicable, hear about appropriate services that might help you make an informed decision.
After the appointment you will receive a letter with a summary of the pension options and what they mean for your circumstances.
Who is eligible?
- Close to/ and over 55s
- If you have a defined contribution pension (one with a built-up cash pot rather than linked to salary).
- If you are considering drawing down pension benefits in the next 6 months.
How to access the service
Appointments are free and impartial. Phone appointments are with The Pensions Advisory Service and face-to-face appointments take place at Citizens Advice Bureaux (CABs).
For a phone appointment:
Call 0300 330 1001 (from outside the UK: +44 20 3733 3495).
Opening hours: 8am to 10pm, every day.
Calls cost the same as a normal call - if your calls are free, it’s included.
Face to face guidance: call 0300 330 1001 to make an appointment with a Pension Wise Advisor at a local Citizens Advice Bureau. Or enquire at your local CAB.
More information can be found on the Pension Wise website at: Pension Wise