Pensions Forecast Reveals Higher Value For Pensioners If Rip-Offs Removed
Pensions Minister Baroness Altmann said pension providers must consider removing “exit” penalties from pensioners’ contracts decades ago as cases of ripped-off pensioners with thousands of pounds lost in unfair penalties increase in number.
Altman said the pensions industry must show it can be trusted else the future generations of Britain have little to no pension funds in the future.
Almost Half Removed From Pension Pot
Altmann highlighted the penalties took about 40-50 per cent of the pensioner’s retirement fund.
Altmann, with other policymakers, are planning to make new rules against pension providers and companies who collect profit from exit penalties.
Baroness Altmann said: “This is a wake-up call to the industry. I beg you, just look after the customers.
“There are some insurers being fair, writing off some of their back book [income from old policies] and bringing down the old legacy charges – that’s great, they get it.”
“My message is, if you don’t look after your customers, then whatever government does to get people into pensions, they are not going to stay.”
Pensions Industry Needs To Show It Can Be Trusted
According to Altmann, pension providers need to show they can be trusted.
Observers said their pension forecast shows 2.2 million consumers facing huge cuts from their pension funds should they withdraw the money from age 55 under the new pension freedoms.
According to observers, the exit penalties, accompanied by huge income taxes against pensions, had rendered the freedoms as useless.