A major shake-up in pension legislation is causing public confusion and could leave older people out of pocket, a pensions expert has warned.
Staff at Richard Jacob’s Pension Services say enquiries from people looking to cash in their pension pot are on the increase.
They have even had calls from confused nurses who wrongly believe that they may benefit from leaving the NHS pension scheme – generally regarded as one of the most lucrative pensions available to UK workers.
“While it is right that people should have freedom to determine what to do with their savings, we are becoming increasingly concerned that people may be encouraged to act rashly and leave themselves short of funds in later life.” said Emily Jacobs, a Director at Newcastle-under-Lyme based Richard Jacobs Pension and Trustee Services .
“We have had calls from hospital staff asking whether they should leave the NHS scheme and during the conversations we’ve been told that many of their colleagues are considering cashing in their pensions.”
The average pension pot in 2014 was around £40,000.
Meanwhile, an average NHS pension is worth around £6,900 a year – equivalent to a pension pot of over £290,000.
“Generally speaking people in public sector pension schemes wold be extremely unwise to move their money,” said Emily.
“But all the talk of pension freedom has clearly led to confusion among the general public.
“At least one Government Minister has even been heard using the term Lamborghini pensions. We would urge people to ensure they will have enough to live on in retirement before they decide to buy an expensive sports car, a Caribbean cruise or a new kitchen.”
ENDS
For further information contact Emily Jacobs on 01782 557800.
Notes to Editors:
Richard Jacobs Pension & Trustee Services Ltd was established in 1992 and operates from offices at Brindley Court, Lymedale Business Park, Newcastle-under-Lyme.