White Paper – Addressing the Pensions Timebomb

By November 7, 2017 No Comments
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Executive Summary

On the 24th April, 2014, Prestwood published a press release warning that while the Government’s new approach to retirement income was like a breath of fresh air, consumers were in danger of being short-changed if their adviser did not use cash-flow modelling. We explained that pensions freedom did not mean that the rules were any less complicated or less open to mis-selling or scams. We insisted then that a visual picture of future financial situations was vital for individuals especially if they were being ‘advised’ to move schemes or withdraw their pension funds altogether.

More than three and a half years after our warning, the FCA has realised that there “are risks that older consumers’ financial services needs are not being adequately met, resulting in exclusion, poor customer outcomes, and potential harm.” Whilst more and more networks, providers and individual advisory firms recommend cashflow modelling is used to evidence the potential sustainability of income and capital, the majority or those advising on pension issues do not.

Read the full paper online now.

You can find out more about how Truth® can help with pensions advice in our blog posts on Market Crash simulations and DB Transfers.