He said it would be “extremely irresponsible” for anyone to recommend clients to rely on means-testing when such benefits are only a safety net and can be taken away at any time.
The statement is an obvious retort to the growing concern in the industry that there will be a significant number of people for whom personal accounts will not be suitable because a big chunk of contributions will be wiped out by means-testing.
So advisers are damned if they do and damned if they don’t. They are apparently “extremely irresponsible” if they advise clients it may not be worth saving into personal accounts, yet could also face misselling claims if they do advise individuals into the scheme and parts of their contributions are wiped out.
Once again, the argument comes down to a fundamental flaw in the design of personal accounts and its ambiguous relationship with advice.
Money Marketing is interested to hear Tory pension spokesman Nigel Waterson’s belief that consensus is “coming apart at the seams” due to such issues and hopes that further pressure, both from the industry and within Westminster will finally press the Government into a rethink.