The Pensions Regulator releases findings from its latest ScamSmart campaign 11 November 2019
The Pensions Regulator (TPR) has published worrying findings that relate to the devastating effects of pension fraud and how susceptible so many pension savers are to scams.
Beginning with the tag line ‘ 22 years of pension savings gone in 24 hours’; the press release details the extent of the issue, and reveals that nearly two thirds of people (63%) would trust someone offering pensions advice unexpectedly, which is one of the key indicators of a pension scam. The research also indicates that more highly educated individuals are more inclined to fall victim to pension fraud, with 40% of respondents with a degree more likely to welcome pension advice from companies they have had no previous dealings with. The use of the statement ’22 years of pension savings gone in 24 hours’ originates from the fact that £82,000 was the average amount that people lost to pension scammers in 2018 and that it would take approximately 22 years for the average worker to save that amount into a pension scheme. The analysis also highlighted that 24% of those surveyed confessed to taking 24 hours or less to decide on a pension offer, which is no time at all to decide on something so monumental, which could have life changing repercussions. TPR recognises how pension scams can leave hard working individuals who have saved up tirelessly for their retirements in awful predicaments and facing the prospect of spending their later years with limited financial resource. It was with this notion in mind that TPR’s release was issued - in order to raise awareness of the problem and to alert people to the tell-tale signs of pension scams. They also offer four helpful steps that individuals should take in order to keep themselves protected: • Reject unexpected pension offers whether made online, on social media or over the phone • Check who you’re dealing with before changing your pension arrangements – check the FCA Register or call the FCA helpline on 0800 111 6768 to see if the firm you are dealing with is authorised by the FCA • Don’t be rushed or pressured into making any decision about your pension • Consider getting impartial information and advice
It would be appropriate to end with the adage that if something sounds too good to be true, it probably is.
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PLSA pension proposals for next government 11 November 2019
The Pensions and Lifetime Savings Association (PLSA) has provided four crucial steps that it states would build the strength of workplace pensions in the UK.
The Pensions Manifesto published online emphasizes how important it is for individuals to save for their futures so that they can settle comfortably into retirement. The document acknowledges that more workers are investing into pensions than ever before and that there is more flexibility for people in terms of how they choose to use their savings. But it also warns that there are further improvements that must be made by the next government to prepare for the uncertainties that the future may bring.
Four main recommendations have been made:
• The first point concerns adequate contributions and states that the current rate of eight percent is not enough to ensure a good quality of life for workers when they retire. The suggestion is that this rate is uplifted to 12%, - six percent contributed by employee and the additional 6% by employer. The recommendation is that this should be in place by 2030. Further suggestions are that the Lower Earnings Limit (LEL) for auto-enrolment should be removed and any funding relating to tackling social care should not be supplied by pension funds. • The second point discusses effective engagement. This means ensuring that savers have access to all figures from multiple pension pots in one consolidated area, alongside state pension figures on pension
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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