Are pensions worthwhile?

Steve Weisner - Independent Financial Adviser Radcliffe & Newlands

One of the comments I am starting to hear quite frequently is people questioning whether pensions are still worth doing. Goings on at Equitable Life and NPI in recent years certainly have certainly not helped and the stock market down turn in the first 3 years of the millennium lead to loss of confidence in some quarters.

I would still say the answer is a resounding yes, though unfortunately bad news tends to travel faster and further than good news. The fact that the stock market has recovered previous losses has drawn far less attention, as have cases of people being happy with their pensions and investment returns who are now being more worried about their inheritance tax bill.

Good news is at hand though as recent changes in pension legislation have meant most people will be able to obtain more tax relief than ever before. The pension contracts have been getting cheaper charges and more investment choice than previously with cleaner contracts meaning penalties on transfer, stopping and starting a policy no longer apply in most cases.

Investment choice has also increased with many pensions allowing investments in various unit trusts, openended investment companies (OEICs), investment trusts, pension funds and self invested personal pensions (SIPPs) allow access to individual shares amongst their choice of investments.

Finally with changes in pension legislation in 2006, it is now no longer compulsory to purchase an annuity and there are many pension income options such as phased retirement, income withdrawal and alternatively secured pensions. On this basis the Governments aim to remove many of the reasons why people have not invested enough in pensions previously, have now been achieved.

The current variety of pension contracts are arguably the best they’ve ever been with something for everyone out there, anyone with a previous pension or pensions should be looking to review their affairs and any old contracts can normally be improved upon in terms of charges, fund performance and flexibility. If this is something you or someone you know would like to find out about, please contact Steve Weisner on 020 7382 0437.

Steve Weisner
Independent Financial Adviser
Radcliffe & Newlands
5th Floor Crystal Gate
28-30 Worship Street
London
EC2A 2AH  

Tel: 020 7382 0437
Fax: 0207 374 0462
Email: SWeisner@myeggnest.com
www.rad-new.com

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