Citizens Advice Maidenhead and Windsor is urging people to shop around for their pension to make sure they get the best deal for their retirement.
A new report from national Citizens Advice found 7 in 10 people (70%) who have accessed their pension since new freedoms were introduced didn’t shop around for different products.
A quarter of consumers (24%) who stayed with their pension provider did so because they thought the product they were offered delivered the best value – despite not looking at options with other providers.
Citizens Advice Maidenhead and Windsor is warning that if consumers don’t look at a range of different pension products they may end up with a poor value product which doesn’t meet their needs.
Based on a survey of over 500 people who have accessed their pension since the freedoms were introduced, the report also reveals consumers who buy annuities are more likely to shop around with over half (57%) checking products with other providers. This compares to two in five (39%) who bought a drawdown product and just 14% for those taking cash.
Matthew Laverack, at Citizens Advice Maidenhead and Windsor said:
“Decisions around pensions can have a big impact on how people spend their retirement so it’s concerning so many people aren’t shopping around for their pension product.
“While pension choices can be daunting, by looking at different products from other providers, consumers can make sure they buy a scheme which best suits their needs.
“A good first step is to book a free Pension Wise appointment with one of our guidance specialists who can explain your options. From there, you can look at what other providers can offer you to make sure you get the best product for your retirement.”
To book a face to face or telephone Pension Wise appointment call 0800 138 8292.
For advice on other issues please consult www.maidenheadcab.org.uk or phone 03444 111 444 (local call rate) weekdays 9.00 am to 5.00 pm