"They take their tax free cash and leave the rest of the money invested without knowing how it is invested. They have then seen the fund drop in value and either moved fully to cash or even cashed in their pension in full and created a massive tax bill.”
With proper financial advice, Mr Morris said, taking higher risks with a pension can pay off: “If they had taken the time to seek advice and established if drawdown is suitable, they may well have found that taking a bit more risk could well benefit them in the long run and make their pension go further.
“Those clients with global equity funds as part of their portfolio – which is most – have seen that part of their portfolio recover better than most following the market crash in March.”
Dom Webb is an intern working with Financial Adviser
