A welcome upheaval

WHERE were you when the pension revolution began? Sunning yourself in the garden, it seems, or relaxing with family.

reader Michael Jones felt he’d done his bit by making time — ahead of a drive (not in a Lamborghini) to the Chiltern Hills — to call us on Monday and ask for the Pension Wise phone number.

It was needed for mid-May when he and wife Leanne would have finally decided on the type of cruise they want to take now new rules mean he has far great freedom on how to spend his pension pot.

‘I’m not sure many of my friends are feeling fired up or revolutionary. rather, they’re grateful for the reforms and will get on with them in their own time,’ the 61-year old added.

It seems Michael’s sentiment was shared by many over-55s: no need to rush, let’s do this at our own pace. there were fears of a stampede of over-55s eager to splurge their entire pension pots on sports cars and the like. but yesterday — marking the first full day when insurers were open for business to customers eager to cash in on the reforms — passed off smoothly.

With new powers to dip into pension cash like a bank account or pass it on to loved ones and free guidance about all the choices available, the old rules which bound many to an income for life from an annuity have been ousted. a pension revolution indeed. and while no revolution can ever take place without casualties — so far a very poor choice of new flexible funds, hefty transfer fees and a potential minefield for tax rebates — the early signs are looking good.

What has become immediately clear is just how crucial Pension Wise is going to be.

this new, independent, free guidance service involves face-to-face, 45-minute sessions overseen by Citizens advice, and phone line interviews run by the Pensions advisory Service — plus a website stuffed with useful information.

For many people, Pension Wise is a rude, but necessary, wake-up call: it’s the first time they have properly squared up to what they’ve managed to save (or not) for their retirement.

these guidance sessions will need to look at what your state pension will be and any additional money put by over the years.

So beforehand, dig out details of old pension pots and think hard about what you want in retirement.

Lots of people still feel deeply uncomfortable talking about money. Don’t be. You don’t have to be driving a Lamborghini, but you do need to be in the driving seat.

So far, it seems the Pension Wise service has trained its staff to skilfully hold callers’ hands through an often tricky subject —– and if more staff are needed as the weeks roll by, it’s imperative resources are found.

It is going to be the crucial first step for millions to take control of their future. We’ll be watching to make sure it stays sure-footed.

Note of caution

Mark Westby had a monstrous struggle to restore his sparkling credit file after a fraudster ruined it (see page 47).

It is a shameful affair that took nearly three months to sort out — and one that sullies all parties involved. Mobile network ee says it needed two months to investigate the fraud before it would allow equifax to wipe Mr Westby’s slate clean. that seems an extraordinary amount of time in light of the simple circumstances of crooked behaviour — and far too long, given the customer’s dire need to remortgage.

but worse is the failure of the system to let wronged consumers do their bit to sort out the mess.

On the face of it, a note of correction is a nimble idea. You explain what’s happened in a few words and this acts as a signal to prevent lenders blackballing you during any ongoing investigation. but we’ve heard from readers that many lenders routinely ignore these notes and then refuse credit. Why not amend the rules, so that if there is a suspected fraud, there is no black mark until a probe is completed? Let would-be borrowers be innocent until proven guilty. Next april, the agencies equifax, experian and Call-Credit will all be fully regulated by the Financial Conduct authority City watchdog. they need to come up with a better way of resolving such disputes. What we have now just isn’t fit for purpose.

Think small

a BRAND-NEW financial year brings with it a host of new tax allowances. Most importantly for savers, a new tax-free Isa allowance of £15,240.

Sick of rotten rates — especially in the High Street — many will be tempted not to bother putting any more cash in these accounts. Or, unwilling to swap deals to earn barely a few pounds more, simply stick to the devil they know. but it’s vital not to do this. Plenty of smaller providers offer a much better deal. there’s never been a better time to deprive big banks of your nest egg.