What a Pensions Shambles! This Could be Worse Than PPI!
Just 65 days into the new regime, financial giants are under siege from furious customers.
The Chancellor had promised savers easy access to their cash. But today a Money Mail investigation can reveal a string of disastrous failings.
- George Osborne’s pensions revolution in crisis as string of failings emerge
- Firms refusing withdrawals for fear of being sued for negligence in future
- Savers being forced to pay up to £1,000 for advice and others turned away
- Delays of up to 90 days in paying out and sky-high charges for withdrawals
Lord McFall, a former chairman of the Treasury committee, told peers yesterday that ‘rip-offs were taking place daily’. He accused the pensions industry of needless complexity and inertia and urged ministers to force firms to reveal their charges. Lord Hughes of Woodside warned the chaotic reforms would make the ‘PPI scandal look like a children’s tea party’.
The Treasury and the Department for Work and Pensions admitted last night that they were monitoring the situation closely. Writing for the Daily Mail today, pensions minister Ros Altmann said: ‘No matter which pension provider you saved with, you should be able to use your pension how you want to.’ And Harriet Baldwin, economic secretary to the Treasury said: ‘We have legislated to allow pension schemes to override their previous narrow rules, so they can offer the flexibilities if they want to.
‘This means that there is no excuse for firms to claim that their rules mean you can’t access your money.’ The Chancellor’s pension reforms – unveiled in the budget in 2014 – were supposed to give the power to pensioners to spend their life savings as and when they wanted.
He said: ‘Pensioners will have complete freedom to draw down as much or as little of their pension pot as they want, any time they want.’
Chancellor George Osborne announced radical changes to the pension system in his April 2014 Budget, which were launched on 6 April 2015. In our FREE pdf guide, we’ll take you through the changes and how they could affect everyone.
This guide has been put together by a team of industry experts to help you make informed choices.