Calls for Pension Reform as Investment Opportunity Fraudsters Steal More than Ever from the Elderly

As elderly people move towards their retirement, more and more are calling for an end to the rule changes regarding pension freedoms because they are causing confusion.

Pension Freedoms Open up Investment Opportunities but Cause Concern

In a recent poll involving 960 men and women aged 55 years old and over, conducted by leading insurance company, MetLife (which also involved 109 expert retirement savings specialists), over 75% of people are demanding an end to more reforms being brought into play two years after the new range of pension freedom initiatives were announced.

They claim such changes are only adding additional uncertainty to their savings plans, as investment opportunity fraudsters wait to pounce.

Pension System not Fit for Purpose

The research revealed that only 35% of savers think they have a reasonable handle on the new freedoms which were enacted to provide more flexibility as to how they can access their funds.

On top of this, a poll carried out with 84 MPs concluded that almost 40% of them still maintain that the pension system in present operation just isn’t fit for purpose (2016, Dods Research).

Investment Opportunity Fraud Reaches New Heights

In May, nearly 40% of over 55s were concerned about the activity of pension advice fraudsters.

That’s not all.

Nearly 45% of people polled were afraid that their current pension funds would run out as their retirement progresses.

All this comes amid news from the City of London Police that 24 pensioners had been fraudulently relieved of £8.6 million in March alone.

This represents an increase of £779,000 worth of losses on the previous month.

Since Mr Osborne announced the last pension freedoms back in April 2014, approximately £42 million has been stolen by pension liberation fraudsters.

Many victims are suckered into investing in opportunities that do not exist or that simply cannot deliver the returns promised.

It all highlights how important it is to take advice on which saving plans to adopt, from bona-fide FCA registered financial consultants, and beware any cold calling about pensions.

Many Turn to ISAs to Make the Most of the New Tax Allowance

The recent changes made in to ISAs, in particular the tax free allowance increase to £20,000 per annum, have made these products even more popular.

Recent stock performance means that ISA millionaires have tripled over the past year, meaning even more may take the long view with the riskier stocks and shares ISA.

Of course, this tax free give-away is valid for any type of ISA, including Cash ISAs.

Eve Hooper

A retired City worker who resides in deepest rural Essex. Eve writes on personal finance for fun and to help educate other older savers.