The pensions problem deepens

The pensions problem, and it’s a serious problem, hasn’t improved since George Osborne recently announced his ‘pensions revolution’.

Packs sent out to pension customers have simply failed to shed much light on a complex issue. Worse still, not all insurers even mention the new rules, and run the risk of leaving their customers in dire trouble.

Most packs cover the new rules by way of a covering letter. In others, such information is buried somewhere in the middle of masses of often jargon-heavy information, running up to 22 pages long.

Ros Altmann, the Government-appointed voice of older workers says: “The regulator needs to act now to improve the information sent to savers.

"Every day it delays, hundreds more people are put at risk of ending up with a bad deal. It’s utterly wrong and is symptomatic of a failure from insurers to put customers at the heart of pensions."

It is less than five months now until the changes are brought in – pension providers need to put their customers in the know, fast, or admit that the real problem is that they’re not sure what to suggest. In which case, the Government needs to do an awful lot more to put millions of minds at rest.

As things stand, it looks like pension customers are being badly informed. We need easy-to-understand information on pensions right now – with all jargon terms such as ‘open market option’ and ‘market value reduction’ clearly explained and the implications of all options covered in full. There’s no excuse for that not being provided.

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