We recently wrote that the FCA is warning that it may need to change “pension freedom” legislation, because it is concerned about people releasing the cash in their pension early. This came after they revealed the results of their study into how people have responded in the years since the “freedoms” were introduced by George Osborne. Now other organisations, including the TUC, have added their voices to the warnings.
The Guardian reports –
“The TUC has warned that millions of workers risk being “plunged into insecurity in old age” after an official report revealed a surge of people grabbing their pension cash early without taking advice… Frances O’Grady, the TUC’s general secretary, said: “This is a damning verdict on so-called ‘pensions freedom’. Workers who are facing insecurity in their working lives now risk being plunged into insecurity in old age. Savers are increasingly dipping into their pots early. And others are following the path of least resistance and risk buying rip-off products.” … Moving retirement cash into other investments “can have disastrous long-term consequences”, said investment firm Old Mutual Wealth. Another firm, Retirement Advantage, said that to do this was “frankly bonkers”.