The Financial Conduct Authority (FCA) has raised concern over the potential risk to savers who access their full pension pots at retirement following changes announced in the Budget 2014.
From April 2015, the government plans to allow anyone over the age of 55 to take their entire pensions pot as cash, subject to their marginal rate of income tax that year. The FCA's Risk Outlook 2014 said: "The reforms increase individual responsibility, putting the responsibility of having sufficient funds in place after retirement in the hands of retirees. "This may cause detriment as individuals could make decisions that are not necessarily in their own long-term interests." The report highlighted findings from the Money Advice Service (MAS), which showed one in seven people und...
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