Consumers should be wary of unlocking their pensions as there is a high risk of a reduced level of income in retirement, warns the FSA.
The warning comes as the regulator, in its latest consumer publication - Unlocking pensions: Make sure you understand the risks - cautions consumers to be aware of the risks involved when taking out their pension benefits before they retire. Taking out a pension before the normal retirement age rarely benefits anyone, the FSA says. On the other hand, it will most likely mean less income in retirement. People considering unlocking their pensions should consider questions such as: How much pension income would you get now and how much would you get if you left it until your retir...
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