Corbyn takes aim at ‘rip-off’ private pensions

Jeremy Corbyn

Jeremy Corbyn says a Labour government would embark on “fundamental reform” to address the needs of “the real middle Britain”, including tackling “rip-off private pensions”.

Writing in the Observer, Corbyn said the party will focus on middle and lower-income voters to develop an alternative to the Tories’ “insecure and credit-fuelled economy”.

He says Labour will tackle “rip-off pensions, unaffordable housing, mounting tuition fee debt and crisis-ridden social care”.

He adds a national investment bank and the “reindustrialisation of Britain for the digital age” will replace “Osborne’s economic house built on sand”.

Corbyn’s comments echo former leader Ed Miliband, who warned “rip-off merchants” would feed on the pension freedoms.

Former shadow pensions minister and Labour MP Gregg McClymont fought a long battle to introduce a cap on auto-enrolment charges and improve fee transparency to stop savers being “ripped off” by providers.

But at last year’s Labour conference Standard Life head of pensions strategy Jamie Jenkins said scammers were preying on politicians’ rhetoric to entice savers into high risk investments.

He said: “People are reading politicians saying pensions are a rip-off, but on the other hand auto-enrolment is great, and that’s a confusing message.

“It’s easy to exploit, and people play on that rhetoric and we are almost giving them a license to do that.”