The days of retiring from the only company you ever worked for with a pension of two thirds and a lump sum of 1.5 times your salary are long gone for most. In their place are a raft of complex options, each with their own benefits and all with some potential pitfalls too.
The changes introduced by the introduction of Freedom and Choice brought some welcome flexibility in how your scheme members can access their retirement savings but it also brought a new vocabulary for them to try to understand.
Five years ago, even if they didn’t know, your scheme members would probably have been able to make an educated guess as to what a ‘tax free cash sum’ at retirement was. Now we have Uncrystallised Funds Pension Lump Sums - a perfect example of less than crystal clear terminology!
These days as well as having to try to understand a dizzying array of terms and acronyms, your scheme members also need to know how they fit with their plans and how they could affect their personal circumstances.
With so much confusion, it’s easy to understand how your scheme members may find Step 3 intimidating.