Have you been looking into options to transfer into a personal pension? There are many things you should take into consideration.
We look at why you should consider all of your options before making such a huge decision.
Should I transfer into a personal pension?
The number of people making the decision to transfer into a personal pension has increased in recent years. This is a result of increased pension freedoms.
People over the age of 55 can now unlock their workplace pension, which allows them a wider choice of how their retirement fund is used. Most choose to save it until retirement. However, more and more people now transfer into a personal pension instead.
While transferring into a scheme that could result in more money may seem like a no-brainer, self-invested personal pensions (Sipps) are not for everyone.
This type of pension carries a varied level of risk depending on the investment. Risk is something the everyday person cannot really afford to take because their pension pot is their only source of income after retirement.
Know what the risks are
Unless you are very knowledgeable and can afford to lose the money you invest, we would urge you to seek advice from a reputable adviser before transferring into a personal pension and in most cases, you should avoid one altogether.
Thousands of our clients were duped into schemes that turned out too good to be true. They invested amounts totalling millions into forestry, overseas properties, storage pods and carbon credits, to name just a few.
The investments were advised by introducers and in some cases, trained advisers. People were convinced to unlock their state pension, which they then transferred into a personal pension. They were drawn in by promises of high risks for low returns.
Unfortunately for our clients, many of the schemes went bust or in some cases, never even existed. As a result, they have been left without a pension pot and we are working on their behalf to get their money back through the Financial Ombudsman Service or litigation.
Are you concerned that your personal pension wasn’t suitable for you? Get in touch. Our team of experts can offer support and advice.