We are now just two months into the new Pension Freedoms Legislation and if you have been reading the national press lately, you may have come across some sensational stories about the pitfalls of the new rules. The papers are having a field day!
So, in light of all the hullabaloo in the papers, we thought we would take a light hearted look at some of the reasons for encashment that we have come across.
Do you remember the dog food and Ferrari quote after the March 2014 Budget? We now seem to have more expensive tastes. This year’s ‘must have’ for the over 55’s is a Lamborghini, and for those living near the sea, Sunseakers are the preferred mode of transport!
Property is still on the list – everything from home improvements and extensions, through to upsizing or investing in rental property, although, it would seem that some would-be property magnates are having second thoughts – maybe they don’t want a house call from Winston Wolfe?
Incredibly, at least one person withdrew his pension fund and used it all to place a bet on the outcome of the Election. Bearing in mind the fact that Pension Freedom went live on the 6th April (Easter Monday) and the Election was on the 7th May, the turn around time for the withdrawal would seem to contradict the times reported in the papers. Apparently it can take longer than 2 ½ months to process an encashment. This is amazing when you consider that the rules have only been in place for a little over two months.
We’ve all come across board games based on t.v. shows, but would you really want to be a real Dragon and invest your pension money in a start up business? Surprisingly, this type of investment is on the increase, but it is very risky and best left to people like Deborah Meadon and Peter Jones.
What happened to good old fashioned holidays and world cruises, family reunions in far away places, paying for the daughter’s wedding, buying a share in a race horse or just paying off the mortgage? We can only suggest that these are some of the more mundane items to spend money on.
We are all living longer. The Mid Life Crisis used to happen to men in their 40’s and quite often the cure was a sports car or other extravagance. It now seems that the Mid Life Crisis has shifted to the 50’s.
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