With effect from 1 January 2004, personal pension holders that move into Pension Fund Withdrawal (sometimes known as Drawdown) will be able to think about their decision for 14 days and change their mind if they want to.
Currently, people with personal pensions move straight into Pension Fund Withdrawal without having any chance to change their mind. However, people with other types of pension that transfer them into a personal pension to take advantage of Pension Fund Withdrawal do get 14 days to change their mind.
After a long consultation period the industry regulator, the Financial Services Authority has agreed 14 days for everyone.
Our View
In our opinion, this is good news. Deciding to opt for Pension Fund Withdrawal is a big decision and people do change their minds. This way, if the wrong decision is made, it can be changed without any detriment to the pension policyholder.
Learn more about Pension Fund Withdrawal, other At Retirement options and the opportunities they offer in the Pensions Adviser.com.