Pros and cons of unsecured pensions discussed
People currently saving for retirement may be interested in an analysis of unsecured pensions recently performed by Just Retirement.
Open to anyone with a stakeholder or personal pension scheme, unsecured pensions are an alternative to buying a lifetime annuity and they allow holders to draw an income from their fund while it remains invested.
According to the organisation, which has just released a guide on the subject, the flexibility of such pensions is attractive to retirees.
In addition, the prospect for strong investment returns is acknowledged to be a draw for many.
However, Just Retirement notes that customers will need an investment of at least £300,000 in order to make the most of the opportunities unsecured pensions provide.
"The flexibility of an unsecured pension is, on the face of it, attractive. It is important to remember, however, that this will only really benefit those with a relatively substantial pension fund," advised Nigel Barlow, head of retirement income solutions at Just Retirement.
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