Longer Living equals Worse Equity Release

OPRA Issues Pensions Cash Release Warning

Published / Last Updated on 13/08/2004

The Occupational Regulatory Authority has re-issued two guides for the public called "A word of warning: don't risk your pension" and "Preventing transfers to pension liberation schemes: further guidance" in an effort to educate the public as to the risks of succumbing to the perils of transferring your pension to tax free cash liberation schemes.

Our view

There are many adverts in the press and on television such as "release the cash from your frozen pension" which whilst may be suitable for some are not going to be suitable for all.

Many use schemes such as 'pension fund withdrawal' or indeed buying your annuity early and can lead in many cases to a higher risk pension fund that is then directly linked to volatile investment/stock markets or others being locked into poor income annuity rates as they has bought their pension early.

Be careful when deciding to exercise an option such as this - take advice first.

Costs For Old Age Care Spiralling

Longer Living equals Worse Equity Release