There is no doubt that COVID-19 has impacted the financial lives of many people, especially those planning to retire or those who find themselves facing an unplanned early retirement.
The ban on contingent charging for defined benefit (DB) pension transfers, where financial advisers only get paid if a transfer goes ahead, takes effect from 1 October 2020.
The Government’s Coronavirus Job Retention Scheme ends on 31 October 2020 in which a third of the UK workforce were furloughed.
With many household incomes under pressure following the impact of coronavirus, it may be tempting for those aged over 55 to consider withdrawing from their pension early.
There are many advantages to choosing to use income drawdown to access your pension, one of the main ones is being able to access your assets in the most tax efficient manner.
The impact COVID-19 has had on pension savings and the fact that many household incomes are under extreme pressure means individuals are now at greater risk of falling for a scam.
Due to the global stock market volatility and the fact that household incomes are coming under extreme pressure, people aged 55 or over may be tempted to access their pension.
The incomes of many households across the UK have been seriously impacted by the coronavirus. More than 9 million people are expected to be furloughed*, the self-employed who are eligible for help will not receive it until June, and some people are not eligible for any of this help including the recently self-employed.
The turbulent markets we are experiencing at the moment are concerning for everyone, but especially for those who are in a defined contribution (DC) pension scheme and looking to retire.
“Get it done!” Rishi Sunak has delivered his first Budget as Chancellor of the Exchequer, pledging a £30bn package to help the UK economy respond to coronavirus and investment in the future; announcing investments in the roads, railways, digital networks and public services.