Retirees could face pension benefit lock-in

People who are considering retiring at 50 or those already taking their benefits through a phased retirement arrangement need to take action to ensure their retirement plans are not affected by the change, the provider warns. Mary Stewart, marketing director at Hornbuckle Mitchell, says retirees using phased retirement, which involves splitting the pension pot into segments, who turn 55 after April 2010 could face additional charges. "Any pension income from vested segments can continue to be paid. But no new drawdown will be allowed from unvested segments until the retiree reaches age ...