The Public Accounts Committee Is Warning That Pension Freedoms Could Lead To A Mis-selling Scandal

Pension freedoms came into force last year and enabled savers aged over 55 to access their pension funds without having to buy an annuity.

In its latest report, the Committee warns “pensions freedoms reforms are a potential trigger for future mass mis-selling”.

It adds that the Financial Conduct Authority does not do enough to ensure that consumers understand the financial products they are buying and that consumers also need to be aware of that they may be eligible for compensation when mis-selling has occurred.

Penny Cogher, pension partner at Irwin Mitchell, said:

Expert Opinion

“We are working harder and living longer than ever before, making it all the more important to keep our hard earned pension money secure. Following the changes to pension rules in April 2015, it is now easier to take your pension money as a cash lump sum, which in turn has led to a rise in inventive and ever changing pension scams and mis-selling.

“Pensioners should be suspicious of any schemes that promise high returns because they usually come with greater risk. They should be wary of schemes that look just too good to be true. If an investor has been the victim of mis-selling they should first complain to the Ombudsman, and it may also be possible to pursue a claim against the advisers or scheme administrators.”
Penny Cogher - Partner