Personal pension schemes ‘surrounded by problems’

Posted 19/07/2011

Many Brits may wish to consider equity release for later life when they hear the comments of one organisation regarding pensions.

Consumer Focus has published a new report discussing what it claims are “serious problems” with the UK’s Individual Personal Pensions sector.

According to the body, many people are needlessly encouraged to switch to alternative schemes before discovering their new arrangement leaves them without as much cash during retirement.

Furthermore, it is difficult for consumers to find the best deals due to the complex way in which costs are revealed, while many pension products are accompanied by ongoing fees known as trail commission.

Consumer Focus chair Christine Farnish said: “Our investigation shows that practice in the Individual Personal Pensions market still leaves much to be desired.”

She also pointed out that people need to be confident in their retirement income because many are living longer – something that could encourage them to consider equity release.

These findings come after figures released by Prudential found 43 per cent of those who no longer work are prevented from doing everything they would like in later life due to money worries.

Why not get in touch with Ashtons Legal if you have any equity release queries?