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

Alltrust launches sophisticated investor SIPP

Alltrust launches sophisticated investor SIPP

For advisers and ‘advanced’ clients

Isabel Baxter
clock 02 March 2026 • 2 min read
FCA non-advised pension transfer plans branded 'anti-consumer'

FCA non-advised pension transfer plans branded 'anti-consumer'

AJ Bell blasts FCA’s plans as ‘worst kind of regulatory intervention’

Jenna Brown
clock 23 February 2026 • 3 min read
Advisers search for more than 100,000 pension transfers via Origo

Advisers search for more than 100,000 pension transfers via Origo

In first year

Isabel Baxter
clock 23 February 2026 • 1 min read