Consumers urged to avoid pension pitfalls Go compare with our comparison table

Consumers urged to avoid pension pitfalls

10 December 2009 / by Andy Davies

Pension planning remains a primary concern for many Brits according to consumer advice website Unbiased.co.uk, which has revealed that over a third of all its consumer searches are for advice on this subject.

Following the concern shown by many Brits, Unbiased.co.uk has teamed up with industry experts to offer tips on how consumers can "avoid the pension pitfalls".

Commenting, Robert Clarke at Almary Green Investments, urged people "not to bury their heads in the sand when it comes to retirement planning".

"Pensions are something consumers may wish to not think about. But if you don't take an interest in your future, then who else will?" he said.

According to Witcombe of Evolve Financial Planning, one of the first things an individual should consider before investing in a pension plan is what their total income is now and how much they will pay in tax.

Meanwhile, Danny Cox at Hargreaves Lansdown suggests that while a pension will probably "form the bedrock" of a retirement plan, he urged people should not "ignore the ISA".

"The income from an ISA is ideal to compliment a pension: it is free from further income tax and there is no capital gains tax on the profits.  On top of this, the best ISAs can be cashed in at any time, giving you access to your capital if needed," he said.  

Discussing the importance of choosing the right annuity, Paul McGahan of Worldwide Financial Planning, said: "For many people, the long road to savings ends with the choice of when to take an annuity and which annuity to take. This will be the income guarantee that will provide you with your security in retirement.

"All too often there is little thought given to this but today the area needs very specialist advice."

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