GPII speak to Pension Expert Tony Frost (Managing Director of Choices Financial Solutions)

What is the worst thing that people can do with their pensions?

I would say doing nothing at all. If they at least find out what they can expect at retirement they will have the information required to make a decision. In most cases, where pensions have not been reviewed for years, the funds are performing badly. If someone decides to leave it where it is, in these circumstances, they are making a terrible decision.

What are the options?

They can move the pensions to a fund that suits their risk profile and is actively managed. Alternatively, and this is becoming more and more popular, they can move to a Self Invested Personal Pension (SIPP). This gives people the opportunity to take control of their retirement planning through investments that they understand and believe in rather than putting their funds in the hands of the pension companies. These investments can be varied and include commercial property, hotel developments, farmland and forestry.

What is your typical client?

My typical client is someone with a pension that is not performing well. The vast majority of people have looked at alternative investments and want me to help them to invest. I go through the process to make sure that they are aware of how a SIPP works and that it is considered to be more speculative. People fully understand this and also feel that the products have far greater potential than traditional schemes.

What percentage of people you meet do you find going down the traditional pension route?

About 5%

What percentage of people you meet do you find investing in alternatives through SIPPs instead of going down the traditional pension route?

About 95%

Is your pension underperforming? Contact us at enquiries@gpi-invest.com for your FREE pension review