Pensions - Articles - Pensioners at risk from scams according to TUC

 More savers are coming to retirement with defined contribution pension pots. But following the ‘pension freedom’ changes of 2015, most face the choice between cashing in their savings or expensive ‘drawdown’ products from insurance companies that risk them running out of money.

  

 The TUC says savers need easier access to products that provide them with a secure income in old age. To meet this need, NEST had started developing a blueprint for retirement income services. However, the government announced today that it would not allow NEST to offer such products.

  

 TUC General Secretary Frances O’Grady said:  “It is deeply disappointing that ministers have caved in to vested interests."

  

 “Pension savers have been ill-served by the traditional pensions industry for decades, being shoe-horned into inappropriate products, often with high fees that have left them worse off."

  

 “Those reaching retirement in the coming years desperately need easy access to suitable, good-value products to see them through their old age."

  

 “The announcement that ministers won’t allow NEST to help savers who need it means the risk that government just stands by while more workers reaching retirement fall victim to rip-off products and outright scams.”