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Boris warned as UK pensions face ‘major’ review TODAY – MPs to assess impact on savers

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In 2015, many people aged 55 and over were given more choices about how they access their pensions, which led to wholesale changes in the industry and the way people plan to use their pensions. But MPs are set to assess the impact on savers as UK pensions face a major review.

According to Parliament.uk, the Government has “started a major piece of work looking at how pension savers are protected”.

They said: “This is the first of three planned reports and focuses on protecting pension savers from pension scams.

“Our future reports will look at how savers access their pensions and saving for later life.”

However, Prime Minister Boris Johnson has been warned about the impact of pension freedoms.

Boris Johnson warned about pensions freedoms

Boris Johnson warned about pensions freedoms (Image: PA)

Boris Johnson warned about pensions freedoms

Boris Johnson warned about pensions freedoms (Image: PA)

Jan Shortt, of the National Pensioners Convention (NPC), welcomed the review into pension freedoms but called for the Government to “seriously review” the law on annuities.

She told Express.co.uk: “At the time this was first announced, the NPC said that it was an ill-conceived idea with no protection from scams and those fly-by-night individuals who always jump on the bandwagon when they see easy money.

“It was always assumed that pension freedom would serve to increase individual pension pots but we know that has not always been the case.

“For some, it has been much like ‘live now, pay later’ syndrome – except you cannot buy your pension back when you retire if you have spent it already.

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MPs to review pension freedoms

MPs to review pension freedoms (Image: Getty)

“Although late in the day, with many having their pensions stolen, we welcome the strategy as long as it is robust and holds penalties for those who benefit from scams.

“Scams will happen, no matter what – there is always a genius way around whatever safeguards are in place. It is a feature of the society we live in.

“We take the opportunity to ask the Government to seriously review the law on annuities; i.e. compelling providers to tell customers upfront that their annuity can be transferred without their consent.

“Better still, make consent the default option before any transfer.”

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What is state pension?

What is state pension? (Image: Express)

Dennis Reed, from Silver Voices, added how it was an “error” to introduce pension freedoms.

He said: “I supposed I am concerned, it’s not the main issue about pensioner poverty or pensions generally but there is no doubt the freedoms that were introduced were an error in the way they were introduced because they basically present people with a basic money pot.

“So at the age of 55 someone is presented with the choice, especially in hard times, to use all their money they have in one day for a big investment or a big holiday and then they have nothing left for the future except for the insufficient state pension.

“I’m not sure it was a good idea at all.”

Boris Johnson warned about pension freedoms

Boris Johnson warned about pension freedoms (Image: Getty)

Mr Reed went on to say how pension poverty is increasing across the country with around 55 percent of people aged 66 and over are seen as being in poverty.

He continued: “The pension poverty is going up.

“15 percent of people over 66 are regarded as being in poverty so I don’t think it was a good idea to encourage savings or encourage people to put something aside for their retirement.

Prime Minister Boris Johnson

Prime Minister Boris Johnson (Image: PA)

“Somebody takes their pot at 55 and spends it, or gets scammed out of it, then they may have another 35 years or so of active life where they basically have the insufficient, stretched pension to rely on and benefits.

“I am not sure it was a good move on the Government’s part.

“I am sure it has increased the benefits bill and perhaps that’s not something they intended when they brought these freedoms in. “

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