Scammers rip off £43m of savings
TENS of millions of pounds have been scammed from pension savers since the introduction of pension freedoms in 2015, a new parliamentary report shows.
Police figures show £43million worth of retirement savings have been lost to fraud since the policy was announced, the Work and Pensions Committee revealed.
Now the influential group of MPs is questioning if enough is being done to prevent scams and mis-selling.
Launching a new report today, chairman of the committee Frank Field MP said: “Pension freedom and choice liberated savers to choose what they wanted to do with their own money.
“This was welcome, but as with any radical reform it is important to monitor its practical effects closely to ensure it is working as envisaged.
“In this case it is vital that adequate support ensures people are equipped to ensure they don’t make decisions they subsequently regret.
“I am particularly concerned that savers are more vulnerable than ever to unscrupulous scam artists. This policy must not become the freedom to liberate people of savings.”
Launched three years ago, the freedoms give the over-55s a much wider range of choices over how they use their retirement savings. But research found savers not taking expert advice with just seven per cent of those aged 55-plus and planning to retire in the next two years using the free and impartial Pension Wise guidance service.