Pensions – are you losing out?

This article is about UK pensions. It highlights some of the problems that the pension freedom reforms introduced in April 2015 have created.

The UK pensions watchdog found that the reforms, which gave over-55s greater control over their pension savings (personal and defined contribution pensions), have led to some placing their money in cash accounts. Unfortunately here they can get swallowed up by inflation. Other are taking risks in the stock market without getting financial advice.

The FCA found that 60% of consumers not taking advice about drawdown, were not sure or only had a broad idea of where their money was invested. A third of consumers were wholly invested in cash with around half of these likely to be losing out on income in retirement.

The FCA estimates some drawdown customers could receive 37% more retirement income from their pot every year by investing in a mix of financial assets – such products typically hold stocks, bonds and property – rather than in cash. It assumed an asset mix of 50% equities, 20% government bonds, 20% corporate bonds, 7% property and 3% cash.

Usually people enter into drawdown to get their lump sum, without checking what happens to the balance of their pension fund.  Sometimes it can end up in a cash fund that won’t give them any investment growth.

The report also warned that UK based savers who have taken advantage of the pension’s freedom reforms given to the over 55s and decided to commence drawdown, could in certain cases be subject to up to 44 different and sometimes hidden fees.

If you have a pension (either personal, defined contribution or even a final salary pension) either, in the UK or one you have transferred from the UK, and you are unsure as to what you are invested in or unclear about the fees you are paying, please feel free to get in touch.

Here at Blacktower Financial Management we look at each individual person´s circumstances and tailor a pension solution to meet their specific needs. In the report that we generate for our clients, the investment recommendations are clearly outlined, any fees clearly highlighted and all supporting documentation supplied. There are no hidden fees.

Blacktower Financial Management has been established for over 34 years and has worked with clients through the good and the bad times offering sound advice. We will be by your side both now and in the future.

If you would like any advice on pensions, savings or investments please contact me by email or call me on 658 892 330. Website:  

The above information was correct at the time of preparation and does not constitute investment advice and you should seek advice from a professional adviser before embarking on any financial planning activity.


Blacktower Financial Management Ltd is authorised and regulated in the UK by the Financial Conduct Authority and is registered with the DGS. Blacktower Financial Management (Int) Ltd is licensed in Gibraltar by the Financial Services Commission (FSC) and is registered with the DGS in Spain