Aegon is not allowing its customers to access pension freedoms unless they obtain some form of independent financial advice.

Unless these customers pay for advice, the pension provider company has completely prevented savers from having flexible access to their own retirement funds until April of next year.  Those who choose not to pay for advice can do one of three things: cash in the entire pension and face a tax bill, exchange the entire fund for an annuity, or transfer to another pension provider.

This particular decision, according to human resource experts, follows Friends Life’s decision.  Back in June, this company decided not to offer its customers any kind of flexible drawdown.  These decisions are leaving many left to wonder if pension freedoms are even being used in the way the government originally intended.

Aegon does say that it will possible launch a flexible plan next year, but nothing is set in stone.  This news comes at the same time as Sky News reported that the insurer hired investment bank Citi to oversee the possible sale of its UK assets.