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Labour warns over charges following pension reforms
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Labour warns over charges following pension reforms
Labour is urging the government to ensure people taking advantage of new pension freedoms next April are not ripped off by financial firms. Many over-55s will be able to dip into their pensions pots when they wish to. But the party says a charges cap may be required to prevent investors in certain schemes losing more than a quarter of their money in fees. The Treasury says savers will be given impartial guidance and new rules for financial firms are being introduced. Up until now most people in defined contribution schemes - where the final pension depends on the amount of investment returns - bought an annuity, a pre-set income for life, from a provider when they retired. From next April, savers will be able to use their pension money as they see fit, from the age of 55. More than 300,000 people will be able to access their pensions. A quarter of the money withdrawn will be tax-free, with income tax payable on additional withdrawals......Read more hereTags: None
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