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Other News
City watchdog to probe pension freedom rip-offs
The Financial Conduct Authority (FCA) has launched the investigation amid concerns that savers are in danger of being ripped off when they cash in their pensions. Insurers are to be probed by the City regulator over fears they are offering poor deals to savers who take advantage of new pension freedoms to dip into their nest eggs.
As you are probably aware from previous articles, new rules were introduced last year to allow savers to cash in their pension pots to spend as they like, rather than turning them into an annuity to pay for an income for life. Reportedly, fears are growing that many customers are choosing the first pension their insurer offers them and risk missing out on the best deals. Findings suggest that in the final quarter of last year, 53 per cent of savers who chose to dip into their pensions stuck with the same insurer, while 57 per cent of those who signed up for an annuity didn’t move elsewhere.
Advice requirement question in pension transfers for expats
Pensions transfers for expats may become simpler if the Department for Work & Pensions follows through on plans to drop the requirement for consumers to receive accredited advice before making an expat pension transfer.
News of the DWP’s plan came via a consultation paper published on 30 September. However, before the government gives the go-ahead to any such change in the law as is it relates to pensions transfers for expats, it is first looking for the views of experts and stakeholders.