The article by Edward Lucas on his experience trying to sort out his affairs with two DC plans (Options and Scottish Widows) has focussed attention to Mr Lucas’ attempts to get his pots in the same place. I don’t know who “Outsider -looking- in” is but he sounds authoritative but the rules he’s referring t, rightly infuriate the consumer Lucas. Whether it is Scottish Widows or MoneyHelper , he can’t do what he wants to do with his money.
Pension Bee have been calling for some sense on transfers so that people have some control over their money and this is one of the reasons why. I guess that there will be people who will be saying “rules are rules” but there seems no sense in all this.
There is of course a sense that advice is always worth paying for but most of us want advice on complicated things, not how to bring two pots together. If pots can’t be brought together without the expense of an adviser then the aim of regulation to put the customer in control has failed. It seems to have failed and we may blame scamming but … read beyond John Mather’s comment which shows how idiotic disclaimers are. Advice is not required…
With the best will in the world, the regulations that were put in place to solve a problem have become the problem – I suspect irony from John Mather but this isn’t funny, there are millions of people who need to do the simple things that Edward Lucas can’t.
Statements about regulation doesn’t mean there is no problem.
His scheme may well have said
“It’s a legal requirement on all transfers that MoneyHelper agree it’s ok”.
I’ve heard that so many times from so many customers of so many different schemes I’m sure that many are saying that to customers. But I’m also sure that often the scheme has understood the rules and purpose but explained it badly and consequently customers often see the scheme as delaying a transfer.
Rules layered on rules, and state pension changes, make pensions confusing and get seen as a rip off since it can be so difficult to move/withdraw your own money.
Ironically extra protection potentially leads to an increase in scam activity
“Don’t worry – we can sort all of it for you – just sign here”
Also people will often invest in property as they see it as a sure thing, and miss out on the tax breaks that pensions enjoy.
MoneyHelper used to offer some specialised support for the self-employed who are often un-pensioned, but the relaunch has been delayed.
None of this speaks well of Moneyhelper. Is is really playing an important part in the way we manage our pension affairs?
My gut tells me that MoneyHelper has become more harm than help to the millions who are trying to make sense of their pensions.
It has the role of delivering the dashboard which is undoubtedly good and going to happen. But is it doing much else for pensions?