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Defaqto guide helps navigate new pensions landscape

Cherry Reynard
Written By:
Cherry Reynard

Many retirees are either unaware of or overwhelmed by the recent changes in pension legislation, says Defaqto.

Defaqto has updated its pension guide – Looking forward to retirement: Guide for retirees – explaining the options for those saving for, approaching, and at retirement in light of the new pension rules. The guide includes a number of model consumer profiles, illustrating how a person in certain circumstances and with specific needs could achieve their retirement objectives.

The guide – sponsored by Partnership – looks at the various retirement income options available, highlighting the key issues and potential consequences of different options.

The guide addresses investment risk, longevity, the impact of inflation, and the impact of health on retirement income. The group says that the information contained in the guide should not be considered advice but seeks to equip people with more knowledge to use in a personal guidance and/or advice consultation.

Richard Hulbert, Insight Analyst (Wealth), Defaqto, said: “The new pensions and retirement freedoms introduced by the government provides greater choice for all but also introduces greater complexity into the decision process. It is a complete game changer.

“This unique, independent and impartial guide to the new retirement options helps consumers really understand what the changes in legislation mean to them. The profiles of individuals going through common retirement scenarios allow consumers to draw a picture of what their retirement income options may look like.”

Andrew Megson, managing director of Retirement, Partnership, said: “While flexibility regarding retirement income options is a positive development, it will mean that consumers need to make more complex choices than ever before. However, our research suggests that they are unsure of where to turn for information and are confused by the new pension changes.

“Balancing consumers’ new freedoms with the desire to ensure that they will never need to worry about whether they can heat and eat is likely to mean that people need blended solutions and these profiles highlight how they can work.”
The guide (and model consumer profiles) can be downloaded, free of charge, on the Defaqto website here: http://defaqto.com/siteassets/financial-advisers/resources/publications/free-guides/looking-forward-to-retirement/consumer-guide.pdf