Monetary Planner and wealth supervisor Quilter has urged the DWP to take pressing motion to resolve pension switch points a yr after the division’s evaluate of laws.
Two and a half years on from the introduction of pension switch laws there are nonetheless main points persisting for pension savers, in line with the wealth supervisor.
The most recent figures from the Cash and Pensions Service confirmed that greater than 23,000 of the 28,118 amber flags raised over the previous two and a half years have been raised because of both an unknown cause or for a doubtlessly low threat switch regarding abroad investments.
Of the 28,118 MoneyHelper Pension Safeguarding Steering periods carried out for the reason that introduction of the pension switch laws, just below half (46% or 12,888) have been carried out with an attendee who didn’t know the rationale why an amber flag had been raised on their pension switch.
A 3rd (36% or 10,153) have been carried out after a flag was raised on doubtlessly low-risk transfers regarding abroad investments.
The DWP has beforehand acknowledge that the regulation wording in relation to abroad investments was inflicting delays and points for pension savers but it surely has but to take motion.
Jon Greer, head of retirement coverage at Quilter, stated whereas the laws have protected many from fraud, the identical points that have been recognised throughout the first few months proceed to persist.
He stated: “Earlier this yr the DWP confirmed that work to think about whether or not the principles might be improved is ongoing, but it surely gave no indication of a timeline. Although it’s good to listen to that the DWP is making efforts to regulate its guidelines to remove the present points, this arguably ought to have been finished a yr in the past when it first revealed its evaluate and will have made modifications to stop additional disruption to pension savers.
“As a matter of urgency, the DWP should act to make sure that the divergence between coverage intention and the sensible software of the legislation with regards to the abroad investments wording is ironed out as at current, there isn’t any distinction between abroad investments that current a rip-off threat as opposed to people who don’t.”
