Pension charge cap should be extended to more savers, says TUC

4 February 2015

Commenting on new rules announced today (Wednesday) by the government and the Financial Conduct Authority to protect pension savers, TUC General Secretary Frances O’Grady said:

“The cap on charges is good news for pension savers, but those with savings in old schemes will not benefit from it. The government’s failure to extend the cap, or the remit of new independent governance committees, to retirement income products post-April could leave some savers in a financial services ‘Wild West’ with no protection from excessive charges or dodgy products.

“Independent governance committees are a clear recognition that competition has failed savers, but they still look like a fudge – neither very independent, nor doing much governance.

“Trust-based governance, which ensures pensions are run in members’ interests, offers better assurance for consumers. It will be even more important for those retiring in the future as they try to turn their pots into income in the Chancellor's brave new world. We are risking the same pensions mis-selling and poor consumer choices that did so much harm to pensions in the 1980s.”

NOTES TO EDITORS:

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