Will pensions changes lead to criminals taking advantage?

SueBee

This story claiming the new pensions stuff will mean 'conmen' take advantage.
Fair point or scaremongering?
Can't do URLs as a new user. It's on Sunday Post site called "experts warn reckless pensions reform could see conmen cash in"
Will you be doing this with your pension?
have you seen this warning on any other site?

Linton

There are already conmen preying on naive people to steal their pensions. I dont see anything in the new rules that would make the situation worse or better. The best way to avoid the risk is to NEVER respond to cold callers - no reputable financial services company cold calls. If you need advice talk to a registered IFA.

Dunnit

People are being given more responsibility for their money. This will undoubtedly make them more attractive targets for conmen and is the main downside to the reforms.

SailorSam

We'll always have conmen, i don't think being able to cashin a pension earlier will make you much more of a target. Most conmen that target the elderly are probably those that knock on the door then offer to the roof or garden, so even with the pension changes i don't think the cash is available instantly.

dunstonh

Fair point or scaremongering?

Scams are rife with cold calling unregulated companies already. If anything, it will probably reduce the number of scams as people wont need to attempt to resort to scams to get money from their pension. However, the scams will still continue.

have you seen this warning on any other site?

The regulator have issued warnings and every pension provider is issuing warnings

http://www.sppa.gov.uk/Documents/LATEST%20NEWS%20DOCS/plf3.pdf

kidmugsy

Some pretty clueless people have a bit of money. You have to hope that native caution might be exercised.

jamesd

One of the prime areas for criminal activity is pension unlocking. These changes unlock almost all of the defined contribution pensions as a right. So that bit of fraud should be reduced.

seven-day-weekend

I don't think I understand how these new pension rules work. Surely you can't just take all of your pension money and spend it on a world cruise and then buy a Ferrari? Surely it must have to be invested/provide an income in some way or another?

I can see it causing loads of problems otherwise (unless of course the State refuse to help those who have spent it all, but I can't see that happening).

Do you FAs on here think it is a good or bad idea?

Seabee42

Firstly as people have already said there are conmen out there already. We have linked one transfer out to a dodgy director who has previous form for unlocking and still the member wants to transfer.


As to how the new deal works you can indeed take out all your pension benefit as cash. After the pension commencement lump sum the rest is liable for PAYE.


Whilst a good IFA might disagree with someone wanting a Ferrari to live on in retirement at the end its the individuals decision.

dunstonh

I don't think I understand how these new pension rules work. Surely you can't just take all of your pension money and spend it on a world cruise and then buy a Ferrari?

Yes you can. When the new state pension comes in, there wont be pension credits. So, if you blow your money, it is only your own lifestyle you are causing a problem with.

Surely it must have to be invested/provide an income in some way or another?

Sensible people will do that.

Do you FAs on here think it is a good or bad idea?

Its a good idea. If someone saved all their life into S&S ISAs, they would not have these restrictions. So, why with pensions?

bmm78

seven-day-weekend wrote: »

Do you FAs on here think it is a good or bad idea?

The general feeling I get is agreement with the broad principle of the changes, but cynical about the political motivation behind it and concerned about the way it has been implemented and communicated.