Risks enlarged by pension freedom

By Edie Bourne

Many private doctors have welcomed the pension freedoms introduced in 2015, but – without proper guidance  – this can leave them ‘at risk of harm’, warns a new report from the financial watchdog.

The Financial Conduct Authority (FCA) study found that savers who take their pension pots as cash do not fully understand pension drawdown – taking money from the pension flexibly – with some receiving 37% less income from their pot every year by investing in cash rather than a mix of assets.

Now, after a two-year investigation, the FCA has warned that some pension firms are overcharging savers who are accessing their money via expensive arrangements.