Are the Government right to do a Pension U-turn?

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The government has done a huge U-turn on Pensions and scrapped the rights of 5 million pensioners who had been promised they would be able to swap their annuity for a lump sum in former Chancellor George Osborn’s pension reforms.

The treasury has now said that this part of the reforms will be not be implemented and pensioners who already have annuities will have to keep them.

Ministers have said that the plans for the reform have been halted as pensioners could potentially be charged up to 20% fees for cashing in their annuities and that only a small proportion of pensioners would have cashed in their annuities anyway. In addition, the insurers who may have bought back the annuities are reluctant to do so with only 20% of the major companies agreeing to do so. Pensioners could also have faced thousands of pounds in fees for financial advice.

Ros Altmann a former pensions minister said:

“This is going to be really disappointing for all those people who have desperately wanted to get rid of annuities which they were forced to buy and which were often not sold properly to them in the first place.‘Now these savers will be stuck with these deals for life. The Government got their hopes up and many people will be very upset.”

What are your views? Have you been affected by this or has anyone you know? Should the government have done a U-turn? Are they simply trying to protect pensioners from unscrupulous financial advisers? Should the government have gone ahead with their promise to pensioners to reform pensions before they knew the likely outcome?

Are the Government right to do a Pension U-turn?

351 people have already voted, what's your opinion? Yes No

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Yanky03
12th Nov 2016
0
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unless they intend to increase our pension they should leave it

alone do they not that the taxpayer cannot afford their pension and
perks maybe they look into their own I have never seen them get
a £2 a week rise yet.
Dennis Boe
11th Nov 2016
0
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Absolutely not they urged us to save , now don't want us to have our own money utter disgraceful when will they serve the voters they have no right whatsoever, I too early retirement which meant I got 25% then a small sum I now have no right to have the remainder when I had stroke and become unable to work any longer I was devastated I got DLA now after two further assessments to take this off me and appeals against these experts I have to go through another because transfer of PIP unreal and actually discrimination .
I served my country also been shot at blown up and got nothing as part of my job as far as I was concerned yet they can train anyone without any medical experience to assess me again by a tick box computer questionnaire and express their opinion as to whether my manner was correct even yet its costs millions to train such for 1% that are cheats is and should be taken to courts of human rights, there are plenty worse off than myself they waste more public money than are saving .
magda60
23rd Oct 2016
0
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I think that we should have the choice whether to sell our existing Annuity or not. It seems to me that they think when you get old, you are not able to think for yourself, I find that very insulting its my body thats got health problems not my mind! Just to prove the point please find a small part/point that was brought up in the Parliamentary Debate 'The Sale of Annuities' dated 19th October 2016 chaired by The Economic Secretary to the Treasury, Simon Kirby.
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)

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My constituent, Mr Anderson, contacted me and advised me that, despite the risks, he planned to take up the option of selling his annuity. I wrote to the Treasury and was assured only 19 days ago:

“The Government remains committed to delivering these proposals”.

Yesterday’s announcement is a betrayal of people such as Mr Anderson. I notice that the Minister did not answer the question a few minutes ago, so what exactly do the Government suggest that Mr Anderson and others do now?

Simon Kirby

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Obviously, Mr Anderson is as important as all the other people who, no doubt, will be very interested in this announcement. It transpired through consultation that a very small percentage of people would be better off. We were looking at legislation that would oblige the Government to provide guidance and advice; in the vast—very vast—majority of cases, that advice would be that it would not be appropriate and in the consumer’s best interests to proceed. There is no easy answer, but at the end of the day, I am not going to allow vulnerable older people to take advantage of what may, superficially, seem a good deal, but what, in the long term, is a poor one

Through the whole of the debate Mr Kirby relates to us, on numerous points as "Vulnerable Older people", I think of myself Older but certainly not vulnerable, my mind is very alert and my judgement is great, how dare he be so patronising about pensioners, shame on him!!!
millimenopause
22nd Oct 2016
0
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Yet another shafting by the Pension Service. Lets have a vote on how much MPs should gdt by way of a pension funded by the taxpayer. Add into thd mix at what age they are allowed to claim it. Lets also add how much they should be allowed by way of perks and expenses. Lets see them do a U turn on all that a vote for a pay cut. Greedy, selfish.
thefilthycripple
22nd Oct 2016
0
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How can it not be the Government's fault when some pensioners have already enjoyed this option ?
thefilthycripple
22nd Oct 2016
1
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This is a total outrage ,a cynical election ploy and the excuse is so flimsy . Pensioners and savers have had a lousy deal since 2008 ,we have subsidised the banking bailout and everybody's mortgage . The Conservative party are supposed to stand for thrift and self sufficiency and this is a huge betrayal .
patcaf
21st Oct 2016
3
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This is nothing to do with the government. I understand that there were regulations forcing people to take out annuities and these have now gone but that is life. The government cannot fix everything and people need to take responsibility for their own pensions. There never was any chance of there being a market in annuities and Osborne should have checked on this before making the claim.
Lionel
20th Oct 2016
2
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The former Chancellor's pension proposals seemed rather silly to me.

I'm sure many people, if they could take a lump sum out of their pension pot, would spend it on cars, cruises or similar things. Inevitably, any future income from that annuity would be reduced substantially leaving them worse off in the end.

Additionally, there would be the inevitable exit penalties disguised and charges for taking a lump sum thereby further reducing the amount of their savings.

Recioe for poverty I would think!
rodrigues
20th Oct 2016
0
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I was looking forward to cashing in my annunitys as I would like to enjoy my money now and not when I am unable to do,what right has the government to tell us how to use our pensions.
Wilf
21st Oct 2016
0
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I totally agree with you. We are not children and its our money to take and spend as we want. the government is a nanny state. Churchill would be mortified!!!
Alicia
20th Oct 2016
1
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People are lucky to have such big pension funds, I worked hard for years and got very little for it.
Lionel
20th Oct 2016
3
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I didn't get a right lot either, but it's enough. We make it so.
Wilf
19th Oct 2016
-1
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I think this is outrageous how long did the government think about the new pensions rules-spend money promoting them, giving people hope and then not going through with it! They should be ashamed. They were giving pensioners who are already drawing on private pensions the same choice they are giving those just about to take the pensions. Let us make the decision on whether to keep our annuity or take a different route! We are being treated with total disrespect.

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