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One-off independent guidance will not prepare people for new pensions world, says TUC

Commenting on the publication yesterday (Monday) of the results of the government’s consultation over pensions reforms that were announced in the 2014 Budget, TUC General Secretary Frances O’Grady said: 

“The Chancellor’s U-turn on who should provide guidance is welcome, but this rapid about-turn shows just how badly thought through the Budget proposals were.

“Independent guidance is clearly better than that provided by company sales teams, but half an hour of the best possible advice will not equip people for what could be thirty years of managing their pension pot.

“The Chancellor’s talk of personal responsibility, freedom and financial services innovation is exactly the same rhetoric that led to catastrophic pensions mis-selling in the 1980s.

“Expecting the market to deliver retirement income solutions that work for the great majority is unrealistic. The annuities market was broken, but what we need is the same careful consideration of policy, consumer preference and evidence that led to pensions auto-enrolment.

“We should not forget that auto-enrolment was introduced after it became obvious that policies based on personal responsibility, choice and market solutions had led to a collapse in pensions saving.”

NOTES TO EDITORS:
- The government’s consultation is available at https://www.gov.uk/government/consultations/freedom-and-choice-in-pensions
- All TUC press releases can be found at www.tuc.org.uk
- Follow the TUC on Twitter: @tucnews
- Congress 2014 will be held in the BT Convention Centre, Liverpool, from Sunday 7 September to Wednesday 10 September. Free media passes can be obtained by visiting www.tuc.org.uk/media-credentials and completing an online form. Applications must be in by noon on Wednesday 27 August. Any received later than that will be processed in Liverpool and will cost £75.

Contacts:
Media enquiries:
Liz Chinchen   T: 020 7467 1248    M: 07778 158175    E: media@tuc.org.uk
Rob Holdsworth    T: 020 7467 1372    M: 07717 531150     E: rholdsworth@tuc.org.uk
Tim Nichols   T: 020 7467 1337   M: 07808 761844   E: tnichols@tuc.org.uk

Channel website: https://www.icaew.com

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