The government is seeking views on whether retirement savers are aware of when independent financial advice must be taken before accessing their pots, following the pension freedoms introduced in April.
It said it was aware some felt there was "insufficient clarity" on the issue, particularly regarding benefits with a guaranteed annuity rate. The issue has been raised in a Treasury consultation examining pension transfers and early exit charges. As part of the pension freedoms announced at Budget 2014 and introduced in April this year, the government sought to protect those with 'safeguarded benefits' by insisting savers with defined benefit (DB) pensions first transfer to a defined contribution (DC) scheme before accessing their cash. Read also: DB transfer advice: Is it worth ...
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