It is a sad enditement of a modern society that legislation meant to improve people's access and choice to their own money may also be opening them up to scams.
The pension freedoms are now 2 years old and for such new legislation it is being used in anger with more than 1 million pension savers accessing their pension pots. However where there are large sums of money, crime and unscrupulous behaviour follow and pensions are no different. Whilst the majority of people appear to be taking financial advice before accessing their pension (Financial Conduct Authorities recent retirement outcomes report), those who are not are susceptible to being scammed out of what is likely to be the majority of their life savings.
This enquiry hopes not only to speed up possible deterrent to pension scammers including a ban on cold calling but also to review further improvements to the way the freedoms operate, making recommendations that will benefit everyone.
MPs on Work and Pensions Committee to probe effects of pensions freedoms in new inquiry Jasper Jolly The influential Work and Pensions Committee has announced it will investigate the effects of pensions freedoms in a wide-ranging inquiry. Pensioners have withdrawn large amounts of savings since the freedoms were introduced by former chancellor George Osborne in 2015, but the inquiry will look into a broad range of concerns with the rule changes. The committee, led by Labour MP Frank Field, will scrutinise whether the changes to rules on pension pots have opened up pensioners to fraud, as well as whether an ageing population is holding back enough savings for retirement.