Chase de Vere, the Bath-based national firm of Independent Financial Advisers, is warning that new pension rules about to come in could lead to retired people running out of money.
The changes, which take effect from April 6, give people far greater choice in terms of how they take pension benefits. 
However, Chase de Vere says this increased flexibility is accompanied with more complexity and increases the likelihood that people will make the wrong decisions. The biggest risk, it warns, is that people will run out of money and so their pension funds won’t provide for the whole of their retirement.
The firm, which has 13 offices across the UK, has launched an income sustainability calculator to allow clients to see how much income they can take from their pensions and other assets and the corresponding risk of their money running out before they die.
The calculator uses client-specific details, including information on their pensions and other assets, target levels of income, projections of investment returns based on the clients’ holdings and of life expectancy based on Office of National Statistics numbers.
Chase de Vere head of advice services David Woodhouse said: “We welcome the new pension changes, which will provide fantastic financial planning opportunities for many.
“However, we have real concerns that some people will make the wrong decisions, including taking too much too soon from their pensions, and there and their family’s future standard of living could be affected.
“It is unreasonable to expect most people to have a good understanding of which pension providers to use, how their money should be invested and what level of income they can withdraw safely from their pension and other assets without running out of money.
“Our new calculator will be used with our clients to ensure they fully understand their income options and the likely risks involved. This way they can take a level of income safe in the knowledge that it is likely to be sustainable for the rest of their lives.”
