Pension investors urged to review schemes or risk being hit by high charges

Pension investors with pension contracts pre-dating 1995 may be incurring higher charges than necessary, warns Adrian Smith & Partners.

The Chartered Financial Planner is urging pension investors with older schemes to undergo a review to ensure they are paying the appropriate charges. Those who are being unfairly hit have the option of transferring their pension.

Ivan Hutchings, Director, said: “A lot of the higher charges are within the older contracts and we would recommend anyone with an old-style retirement annuity or pre-1995 contract seek a professional review.

“In September 2002, the government highlighted the issue with a report entitled “To Switch or Not to Switch?” providing an analysis of the gains achieved through switching. But despite this many people have failed to look at the charging structure of their contract and this is why, unfortunately, they continue to be stung.”

Ivan says a professional review will take into account all aspects, including golden nuggets such as guaranteed annuities, which can provide income to the annuitant’s beneficiaries in the event of an early death, and other benefits which should not be overlooked.

In addition, a review would ensure that each investment is aligned to the individual’s risk rating.

For more information, visit aspl.co.uk.