Will the system for pension advice for those aged 55-plus work? Having registered my interest for a “guidance appointment” on the Pension Wise website back in February, I thought no more about it until late March when I was emailed a phone number to book a phone or face-to-face appointment. I got through on the number quickly and expressed my preference for a face-to-face meeting – but was told these were not available (even though the email suggested they were) and I would have to contact Citizens Advice instead. I am not keen to be advised on my pension pot by CAB so when I learned that phone advice was being provided by the Pensions Advisory Service I opted for the telephone.
I am wired not to value telephone advice – it may be generational or the fact that I put too much weight on eye contact and body language as signs of authority and trust. But I decided to go ahead, and on a Tuesday afternoon I was among the first to be advised.
I was prepared, having checked the value of my three pension pots – all defined contribution schemes with different providers, and all very confusing as to the penalties for moving or closing early. I was also armed with one of the new pension statements for those aged 55 and over, which has been on offer since February of this year from the Department for Work and Pensions.
My key questions are the ones to which newspaper articles never seem to provide the answers. Do I need to merge the three (they range in value from £7,000 to £250,000) to take my 25%, can I take 25% from one and then go back for 25% from another? Can I take the small pot in one go? Should I take my full 25% now with the markets buoyant and the politicians smiling on tax-free money for pensioners? At 58, female, divorced, and currently not working on a regular basis – living off capital and some income from freelance work – what should I do?
Of course the one question I need an answer to is when will I gasp my last breath? Having just dropped off my 24-year-old son at the station following the Easter break and mentioned ageing, he expressed such shock that I might live another 30 years that I will use this as a barometer and rule out living until 89. Perhaps settle on an optimistic 85.
My expectations for the 45-minute appointment were pretty low and I initially thought that this would be confirmed. But after a slow start it got going and I think my adviser did a great job.
The session was comprehensive, although if I ever uttered that “is good advice” I was quickly reminded this was guidance not advice. My chap knew his stuff and he came over as not only diligent but as if he really cared that I took the right decisions. He even answered some of the questions which the blanket coverage in the newspapers had so far failed to do.
I still need independent financial advice but, cynic that I am, I have to admit it was a good overview, covered inheritance issues and the need to be on guard for unscrupulous players. My main concern is how gruelling a task it is going to be for those advisers staffing the phones who have to deliver the service goodness knows how many times a day, a week, a month, a year.
