Pension changes will lead to risks for older people

Government pension changes will lead to significant risks for older people

Danger of mis-selling and real hardship for pensioners.

In response to the Government's plans to change the rules on pensions, Michelle Mitchell, Age UK's Charity Director, said:

'Many people, particularly the relatively wealthy, will welcome proposals to liberalise the way in which they draw their pension savings. However we are extremely concerned about the very significant costs and risks involved with the government's proposals to allow more people to draw income directly from their funds. These risks include the mis-selling of complex and expensive alternative products, damage to the annuity market, and real hardship for many pensioners in the future if the value of their investments falls or they live longer than expected. If the proposals go ahead, the government and regulators must ensure that anybody considering new ways of drawing their pension is fully informed of the potential risks and expense.'

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Notes to Editors

Age UK works in partnership with Age Scotland, Age Cymru and Age NI. For media enquiries relating to Wales, Scotland and Northern Ireland please contact the appropriate national office: Age Scotland on 0131 668 8055, Age Cymru on 029 2043 1562 and Age NI on 028 9024 5729.

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