TUC warns on savers going without advice post-pension freedoms

Financial advice-planning-advice-cashflow-analysis

The TUC has raised concerns that hundreds of thousands of savers are going without retirement advice as it calls for a wider remit for Nest to deliver retirement income products.

Based on data from the Association of British Insurers and the Pensions Policy Institute, the TUC says 300,000 savers took out cash lump sums without getting advice. It suggests no one who took out a lump sum between April 2015 and March 2016 took advice on doing so.

The TUC says 15 per cent of those taking out drawdown products last year did so on a non-advised basis, while 74 per cent did not use an adviser to buy an annuity.

The TUC says savers are being left to “fend for themselves” in making complex decisions about longevity and investment, and as a result may fall into financial hardship, take out unsuitable products or fall prey to scammers.

It wants to see Government-backed Nest able to offer low-cost retirement income products.

TUC general secretary Frances O’Grady says: “Pension freedom may sound great on paper. But it is not liberating to leave hundreds of thousands of people to fend for themselves in what is now a very complicated and expensive part of the pensions market.

“The inevitable result, if nothing changes, is a rise in scams and more older people suffering hardship.

“The new pensions minister must set Nest free to offer the sorts of retirement products that are so clearly needed by low and middle-income savers.”

The Department for Work and Pensions has just closed its consultation on whether Nest should be able to offer retirement products such as drawdown and allow more people to join the scheme. Providers have raised concerns about whether Nest would offer value for money, and questioned why a Government-backed scheme set up for auto-enrolment should expand into retirement income.



FOS and Pensions Ombudsman at odds over new Sipp complaints deal

The Financial Ombudsman Service and The Pensions Ombudsman are at odds over the status of a new agreement on how to deal with Sipp claims. After a year of discussions, the two complaints adjudicators have sent conflicting messages over whether or not a new charter would be drawn up to clarify which pension complaints each […]


IFA’s pension cold calling petition passes 1,000 signatures

A petition started by an IFA to ban pension cold calls has reached 1,000 signatures. Red Circle Financial Planning director Darren Cooke started the petition two weeks ago, and is calling for the ban in order to stop vulnerable individuals being sold unregulated investments or getting taken in by scammers. The petition says: “Cold calling […]

Help, I’ve been appointed as a trustee. What are my responsibilities?

Graeme Robb, Technical Manager at Prudential looks at the key duties and responsibilities of a trustee.  This article will consider the following: Duties to be performed on appointment Investment duties Protecting the interests of beneficiaries Keeping accounts and records Distributing property to beneficiaries Duties to be performed on appointment Obtain a copy of the trust […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com