Warren Page, CEO of Wren Sterling, comments on the first few days of pensions freedom

Warren Page, CEO of Wren Sterling, comments on the first few days of pensions freedom

“I think we’re all agreed in the financial planning market that more flexibility in pensions can only be a positive on the whole. However, we wouldn’t be advisers without sounding a note of caution and reiterating that each case truly is unique and with greater choice definitely comes greater risk for those without sufficient education or access to qualified advice.

“We’ve already started to deal with a number of cases where clients have benefited from our knowledge and expertise, avoiding unnecessary tax bills running into thousands of pounds through the new freedoms.

“One, in particular, involved the unfortunate case of a client who was terminally ill and wanted to withdraw his entire fund and pass it to his wife. He would have incurred a large tax bill and his wife would not have benefited from tax-free drawdown on his pension, as he was going to pass away before his 75th birthday.

“Cases like this illustrate the true value of an independent financial adviser. Any fees for advice would have been a fraction of the client’s tax liability had he gone ahead without consulting us. We were also able to move quickly to get his finances in order, providing valuable peace of mind to his family at a difficult time.

“We anticipate many more similar cases to come through, and for us, being able to navigate our clients through a new territory with uncompromised advice is what we exist to do.”

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