Retirement: New pension rules come into force in two weeks - what it means for you

“For example, before the pension freedoms in 2015, the FCA found that eight out of 10 people could get more retirement income if they shopped around when purchasing an annuity. It looks like the same is likely to happen again but now with drawdown.”

Jonathan continued: “The second issue is that many people will have multiple pensions, potentially all being defaulted into different funds. As all providers will be offering different investment pathways and different pricing, this may lead to a far from joined up strategy and cost far more than it needs to.”

“Finally, these investment pathways are incredibly broad categories and whilst better than nothing, it is much better to make proactive decisions about your retirement based on your own unique circumstances. These pathways are designed for those who do not take regulated advice, however I urge everyone to consider whether they should take advice; particularly if they have pensions and other savings which are worth tens of thousands of pounds.

“Whilst there is a cost to taking advice, research shows that people are often better off when they do. “