Pension reforms – the bank of Nan and Grandad

With the new pension reforms coming into force on 6th April, the world of pensions has finally caught up with modern day thinking.

The reforms mean that now you can choose to do what you feel is best with your annuity rather than leaving it tied up in one place. Whether you choose to save, spend or invest, the options are there for you to be able to take one lump sum or draw down from the pension whenever you need to.

With retirement for many now meaning a new lease of life over existence, this means there are exciting possibilities. Of course anything you are thinking of doing should be talked over with a regulated financial advisor as your pension should still look to pay for your future.

For some this could mean the bank of Nan & Grandad is now open, with twenty/thirty and even forty somethings struggling to get on the property ladder. The benefits of having a higher deposit means savings on interest rates and upfront fees on mortgages. Grandparents may consider helping their grandchildren or even children to achieve this as the savings on interest payments can sometimes total thousands of pounds.

Grandchildren may benefit from the help to buy scheme topped up by the bank of Nan & Grandad, through the new pension changes, these two government incentives can really work together in getting the younger generation on the housing ladder.

Your pension can really work well for you especially if you make sound investments; and property can be exactly that. If you are considering investing in property either on behalf of your grandchildren, or as a personal investment, then government help is available through the new pension wise service.

Here at Tortoise we would always suggest that before you decided to move into the buy to let sector, get professional advice regarding your financial circumstances and goals. On average people live longer nowadays so consider the possible effects of a shortfall when considering these options. Our Relationship Managers are here to help and can advise on the positive and negatives of managing a rental portfolio. We also have relationships with local financial advisors who specialise in pensions, annuities and income drawdown.

Contact us on 01733 592020 or go to to see how we can help you.