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Cash point; city desk.

Byline: WITH TRICIA PHILLIPS

NEW rules are being brought in to protect savers who access their pension pots bit by bit using drawdown products.

The 2015 pension freedoms have led to drawdown being the most popular choice as it allows flexible cash access, rather than buying an annuity to give an income for life.

But drawdown is more risky as pots are left invested and there are annual fees and charges that can make a dent in balances.

The Financial Conduct Authority will force providers to be crystal clear about charges in pounds and pence.

Savers who haven't taken advice before accessing pensions will be offered drawdown investment options. These are to help guide people towards making more informed choices - and getting a better deal on their hard-earned cash.

Andrew Tully, technical director at Canada Life, said: "Drawdown has become the most popular choice, but many people don't realise they can shop around to get a better deal.

"The impact of paying over the odds in charges or leaving money languishing in cash can have a significant impact on retirement finances.

"If you do have a drawdown plan you don't need to stick with your current provider.

"You should look around to find the best drawdown provider that fits your individual needs."

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Publication:Daily Record (Glasgow, Scotland)
Date:Jul 31, 2019
Words:212
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