Commenting on Royal London’s warning about pension pot drawdowns, Morten Nilsson, CEO, NOW: Pensions, commented:
“The research released this morning highlighted worrying potential future trends as a result of pension freedoms. Royal London stressed that without regulated financial advice, people may suffer a shortfall in their retirement years, having taken too much money from their pots.
“For the average working person, making significant pension drawdowns will not be necessary, and consequently, clear guidance about retirement products is needed. But, for the majority of our customers, who are enrolled into their workplace pension, only contribute the minimum amount, therefore financial advisers are not necessary but it is important that employers are communicating with their employees frequently about any options available to them, that could impact their retirement savings.
“Whilst this will be an issue for some, the warning is only relevant to the top decile of the population who have substantial pension pots and the wealth to afford an adviser.”