Chair of the Financial Services Consumer Panel (FSCP) Sue Lewis has told MPs she expects the emergence of "a lot of toxic products" in the retirement sector following the announcement of new pension freedoms in the Budget.
Grilled by the House of Commons' ad hoc pension schemes bill committee, she said the risk of product mis-selling in the space will be made worse by the emergence of new, potentially unsuitable products, especially for those with smaller pots. The pension space was radically reformed in the Chancellor's March Budget, which will make it possible from next April for a wider audience to access the income drawdown space, eliminating the need for those with smaller pots to buy an annuity. It also introduced a free and impartial guidance service for all people at retirement, to be delivered ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
