Society of Pension Consultants president Kevin LeGrand has blasted pensions minister Steve Webb for taking an “emotional” stance on enhanced transfer value offers.
The criticism follows Webb’s pledge to “root out bad practice” in the market.
Last month, Webb held discussions with The Pensions Regulator and industry representatives to discuss potential policy actions the Government could take. Webb said: “We urgently need to root out bad practice out of the market. The industry cannot go on offering superficially attractive deals to people that ultimately leave them badly out of pocket. I am very concerned that people are making the wrong choices about their pensions and are missing out on substantial amounts of retirement cash.”
LeGrand says: “It strikes me that Steve Webb’s stance on ETVs is being driven by emotion rather than logic. He just does not seem to like them. But there are very good reasons why members would want to take a transfer.
“Provided they are done properly and employees are given access to independent financial advice there should not be a problem.
“I do not think it is appropriate for the Government to tell people what they can and cannot do with their own money. We are getting into the realms of a nanny state.”