There's been a vast amount of media coverage about the new pension rules since they were first announced just over a year ago, and picking out exactly what's changed, and what it means for you, can be tricky. Newspapers have claimed that greater freedom will result in lots of new opportunities for pensioners, from buying snazzy sports cars to investing in buy-to-let property. However, the changes can be more complicated than some headlines make them appear.
The new rules mean most people who have a defined contribution pension have a lot more choice about what to do with their money in retirement. The Government website, www.pensionwise.gov.uk will help to explain these choices. Before you start thinking through your pension plans talk to your existing provider about what your current pension offers. Then take time to explore your options to see if your current pension is still the best option for you.
At Nationwide we've been going through the new rules to analyse what they really mean – and what the implications are when you decide to do something different with your pension. Whether you're excited about the new possibilities, or just struggling to figure out what's going on, here are 4 important things to remember: