Pensions - the next PPI scandal?
The PPI scandal hasn't even been sorted out, and we're already looking at the next one to contend with. If you're planning on making a PPI claim, do hurry up though - and here's advice on how to do it.
Anyway, it looks like the next massive financial mis-selling scandal is going to concern pensions.
"These reforms have been in operation for six months now: long enough for the scammers to get going, working on defrauding people out of their life savings,” said Frank Field, chair of the Commons’ Work and Pensions Committee.
Some pensioners are already being hit with massive fees when they start using the freedoms they've now got with their pension, and there's a lot to consider regarding the new rules on pensions. With all this to think about, Field said that the government need to start giving data - and fast - on how the reforms are working out for people, and fix any problems that have already arisen.
One of the big gripes is that, while the pensions now give people the right to take their savings as cash, advice needs to be given to any person who has not considered the long-term implications for later years, and make them aware of tax charges and the like.
"Good quality, co-ordinated and accessible guidance and advice will be the best tools to ensure people make the best, informed decisions about their retirement savings, and protect them from scammers,” said Field, adding: "We have seen all too clearly, too many times, what happens when financial information is not properly provided and regulated. We literally cannot afford another financial mis-selling scandal."
Now, the government are doing something about this, and have set up the Pensions Wise service, which gives you a session over the phone, offering guidance and information about your pension and what you can do with the new rules. Sadly, it seems like there's not many people using the service (so hop to it if you're reading this - go and make the most of it) and pension companies should be doing more to point people toward it.