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Encourage members asking for cash drawdown to get guidance

You should encourage scheme members asking for cash drawdown from their pension to use Pension Wise for impartial guidance.

Since pensions flexibilities were introduced, many scheme members have been able to access their pension pot as cash at age 55. However, cash drawdowns may not be in a member’s best interest, especially in times of economic uncertainty. Scammers may have approached them with investment opportunities or it may have been recommended by rogue financial advisers.

You should encourage scheme members to get independent guidance before taking a cash drawdown. You can do this by directing members to Pension Wise for free and impartial guidance – either online or via their dedicated helpline.

You should also direct members to the Financial Conduct Authority (FCA) ScamSmart website to get to know the warning signs of a scam and check the firm they are dealing with is authorised to provide pensions advice.

Anyone dealing with firms not authorised by the FCA are unlikely to be protected under the Financial Services Compensation Scheme if things go wrong.