XPS Pensions Group supports Pension Awareness Day in Reading

XPS Pensions Group (XPS), the largest pure pensions consultancy in the UK which has its head office in Reading, will be supporting Pension Awareness Day this Friday 14th September in the city centre.  A double decker bus will be located at 7-8 Broad Street East all day, where pension experts from XPS and across the industry will be on hand to offer assistance and guidance to help local residents with any pension questions they may have.

XPS, who’s head office is on Station Hill in Reading, recently launched a report highlighting that uninformed decisions taken to exercise pension freedoms could end up costing members a lot of money. For instance, members with an average pension pot of £230,000 could;

• Run out of money seven years earlier (at 81)
• Receive an income £2,600 lower (£8,100)
• Leave an inheritance £340,000 lower (£500,000)
• Buy an annual flat annuity at age 75 that is £4,000 a year lower (£18,500)

The report suggests that the pensions industry needs to do more to help educate pension scheme members on the unintended consequences of pension freedoms, announced by former Chancellor George Osborne back in 2014.  This includes financial advisers, employers and pension scheme trustees who could all be doing more to help with the decisions being made with the largest savings pot consumers will ever own.

Neil Macbeth, Principal Consultant, XPS Pensions Group said: “Better support and education is needed for pension scheme members so that those who choose to move their pension away from their employer’s scheme make an informed decision. Given the range of options people face and the complexity of literature and charging structures, more needs to be done to ensure people don’t lose out in retirement. More education for pension scheme members about the nature and value of their defined benefit pensions will allow them to better judge the pros and cons of any potential pension transfer and the risks inherent to it including the risk of pension scams.

“Events such as the Pension Awareness Day provide local residents with access to pension experts who may be able to provide them with the guidance they need to protect them from making the wrong decision with their pension savings –  potentially one of their largest assets. We are proud to be part of this event and look forward to meeting with the residents of Reading to discuss their pension concerns.”