Pensions - Articles - Charges cap discussion welcomed by pension adviser

 Three months after the implementation of the new flexibilities, Portal Financial believes that there are issues that need addressing including whether a cap on charges needs to be considered.

 Portal Financial also wants to protect the interests of people with small pension pots, which was a significant issue before the new flexibilities, when people were essentially forced to buy an annuity and must not become a similar issue under the new flexibilities.

 One area that needs addressing urgently is the pensions industry’s ability to service people in a much more effective manner, as legacy systems currently block some people from the new freedoms. The industry must embrace technology in order to improve efficiencies.

 Jamie Smith-Thompson, managing director of Portal Financial, says: “The good news is that, at least initially, there has been a lot of competition in the drawdown market, which has helped to drive down charges. However, we are also seeing areas of concern such as unnecessary delays and charges from providers associated with transferring pensions, a lack of transparency and regulatory concerns.”