Could switching pensions be beneficial?

Posted on 22 July 2011

People looking for ways to pay for care may consider switching their pension products.

One commentator has said that doing so can sometimes reap rewards, making back the money incurred in charges from the switch, and then more.

Phil Perry, director at Ark Financial Planning, said there are "a number of reasons" individuals may move pensions in certain circumstances.

"When switching from A to B and feeling that there could be an initial loss in doing that, [people have to remember] that there is a much bigger picture in doing that," he said.

However, a Consumer Focus report has warned that while some consumers are being advised to switch pension products, many of these cases are not appropriate candidates and could lose money.

Moreover, millions of people were seen to hold Individual Personal Pensions, which are designed for those who do not have easy access to employer-arranged pensions.

Posted by Natalie Edwards

 

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