Government pensions policy will be the next scandal to break after the overstated misselling problem...
Government pensions policy will be the next scandal to break after the overstated misselling problems, argues Michael Howard, Conservative MP, which could see the government facing compensation claims.
The new pension plan will, according to Howard, mislead a lot of people since no one is going to tell them whether a product is suitable for their individual needs or not.
"A huge swathe of the population might indeed be ill-advised to buy a pension."
As it is now, an average couple both age 60, would have to have saved at least £142,000, which is the present value of the minimum income guarantee together with average housing and council tax benefits, on top of their state pension to remain clear of means testing in retirement. If they have saved less than that, they will lose benefit for every pound they have saved.
However, this scandal is in one sense on a larger scale than the previous one, argues Michael Howard as "[And] a key difference from the misselling scandal is that there will be no-one to blame, and to seek compensation from, except perhaps the Government."
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