Inflation & low interest rates to erode retirement spending power – check your pensions

She detailed: “Delaying retirement should not be taken lightly, but this decision may well be to enable someone to have more time to build a larger pot, perhaps even continuing to work in some form.

“Regardless of current circumstances, no one can tell what they may face in the years ahead, and some may even need to dip into their pension when they are eligible to do so.

“The amount of pension funds withdrawn through the pension freedoms rose during the first three months of 2021 and while many may have carefully considered doing so, it’s still good to see the Financial Conduct Authority (FCA) proposing rules to get pension providers to refer retirees – who are seeking to access their pension pot – to Pension Wise, the Government-backed guidance site.

“It is vital consumers are made aware of the financial impact that accessing their retirement fund can have and whether there is an alternative. However, it is also important retirees seek advice during the earlier stages of their retirement planning to avoid rash decisions later.”


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