UK - Government pension reforms will cost pensioners much more than estimated, Liberal Democrats claim.
Government figures suggest the proposal to reduce the obligation on employers to keep company pensions linked to inflation from 5% to 2.5%, would mean pensioners could be £6500 worse off over 20 years.
But the LibDems say the true figure will be much higher. It says the government’s figures are based on the average pensioner having a company pension of £68 a week.
LibDem pensions spokesman Steve Webb says the typical newly-retired pensioner has a company pension of around £98 – about 45% higher than the government assumption. As a result, company pensioners could lose an average of more than £9000 from the changes.
Webb said: “What the government dismisses as a minor technical change will cost pensioners thousands of pounds.
“Pensioners have a right to know exactly how they could be affected. The government must revise its estimates and make them available to pensioner groups.”
Jonathan Stapleton asks whether newly-accredited professional trustees should be a statutory fixture on pension scheme boards.
Savers are being warned by the Insolvency Service to guard their pension pots from investment scammers and negligent trustees as it winds up 24 companies.
Respondents say they should only be required in certain situations as the system is not broken.