How flexible is your pension, now new freedom rules are here?

By Mattioli Woods

13 May 2015

The Chancellors Budget in 2014 announced radical changes to allow pensioners greater freedom over how they draw their pension in retirement.

By Stephen Jackson, Taylor Patterson.

The reforms which take effect, from 6th April 2015 mean no-one will have to buy an annuity, and for the first time savers will be able to take their pension pots as cash. With pension freedom day upon us, people are keen to know what services their pension providers are going to offer. At Taylor Patterson, we have been inundated with questions from our clients, looking to understand how flexible their pension products will be after pension freedom day.

So the pension providers have had a year to research and design some innovative pension products right? Right.

However, they still don’t think that is long enough and their product sets just aren’t compatible with this new world of flexibility. Pension companies have admitted they are being stretched to breaking point by an increase in demand, not only from pension freedom, but having the added pressure of dealing with new Auto Enrolment schemes.

Interestingly, there is no legal obligation for providers to provide unlimited access to pension funds, so check with your pension provider or Financial Adviser as soon as possible to understand how flexible your pension actually is.

The National Association of Pension Funds, which represents 1,300 funds with 17million savers, has warned there could be severe delays for those trying to access their pensions, or swap products to those suiting a lifestyle choice.

Actuaries warn that over half (58%) of occupational pension schemes are still undecided about whether they will enable their members to have flexibility, while 15% say they will offer no new flexibilities, so you might think you want to consider a transfer to a new plan that will allow you to do what you want with your savings.

However, be warned, it may not be in your best interests to transfer, you may incur transfer penalties or forego valuable guarantees/benefits. With such a demand for flexibility, swapping pension providers could take you in excess of 10 weeks, so depending on how much of a rush you are in, it might be worth talking to your pension provider or financial adviser as soon as possible. For those in less of a rush, it could well pay off to sit tight and see which providers come up with the best flexible products once the market has settled down.

Unless you have the benefit of already being invested in a drawdown friendly pension contract the likelihood is, for many thousands of pension plan holders is that they will need to transfer to a flexible pension plan which will offer the option of taking flexi access drawdown at any time unless they intend to fully cash in their pension pot. However due to the demand this could take some considerable time, and plan holders will need to be aware of any extra fees and charges incurred in this exercise.  

Latest news

1

Date revealed for opening of entries for Red Rose Awards 2026 Red Rose Awards 2025

Date revealed for opening of entries for Red Rose Awards 2026

14 Jul 2025

2

Northcote celebrates prestigious industry marketing award for the 25th anniversary of Culinary Festival Obsession Northcotes winning awards

Northcote celebrates prestigious industry marketing award for the 25th anniversary of Culinary Festival Obsession

14 Jul 2025

3

Applebridge take over first floor letting at Ackhurst Business Park in Chorley John Kiernan - Construction Director & Paul Troubridge - Project Director; from the Applebridge Family

Applebridge take over first floor letting at Ackhurst Business Park in Chorley

14 Jul 2025

4

Expanding Airframe Designs appoints new advisory board chairman David Roberts and Jerrod Hartley

Expanding Airframe Designs appoints new advisory board chairman

14 Jul 2025

5

Booths win gold at International Cheese and Dairy awards Cheese counter at Booths

Booths win gold at International Cheese and Dairy awards

14 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College University Courses Building, Burnley, BB12 0AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin