Govt must protect retirees from 'rip off' drawdown charges - Labour

Jenna Towler
clock

Labour has urged the government to ensure none of the 320,000 savers expected to take advantage of pension freedoms are exposed to "rip off charges".

The opposition said hundreds of thousands of people are expected to look for annuity replacement products from April next year, exposing them to potentially high charges. From April next year people aged over 55 will be able to access their pension pots as and when they wish. Many will opt for drawdown contracts, seeing part of their pot remain invested. Labour said the government had not factored the risks associated with income drawdown into its plans. It suggested a charge cap may be necessary to prevent investors losing out. Shadow pensions minister Gregg McClymont said: “Labour we...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Transfer changes 'a start, not the finish line', pensions industry says

Transfer changes 'a start, not the finish line', pensions industry says

Clear and practical guidance ‘essential’ to apply the new framework consistently and with confidence

Jonathan Stapleton
clock 23 July 2026 • 4 min read
Financial Vulnerability Taskforce calls on advisers to rethink retirement planning

Financial Vulnerability Taskforce calls on advisers to rethink retirement planning

Publishes guide suggesting to ‘move beyond a pensions-only approach’

Sophia Panayi
clock 22 July 2026 • 2 min read
What might be in store for pensions under a Burnham premiership?

What might be in store for pensions under a Burnham premiership?

'My first hope for pensions under Burnham is stability and medium-term planning'

Andrew Tully
clock 20 July 2026 • 4 min read