30 June 2006
Enquiries to: Malcolm McLean, Chief Executive
Direct Line: 020 7630 2270
Email: malcolm.mclean@pensionsadvisoryservice.org.uk
PENSION WORRIES GROW
Enquiries to The Pensions Advisory Service (TPAS) have increased
substantially over the last year, reflecting, in TPAS's view, a
growing public awareness and concern about pensions and their
significance in the face of longer lifespans and time spent in
retirement.
In its annual report published today, (30 June 2006) "Advising
on Pensions: a Review of Activities 05/06", TPAS reveals that a
record number of people (nearly 57,000) rang its helpline in the
period April 2005 to March 2006 seeking information, help and
advice on a range of pension issues. 4,800 written enquiries were
also received. In addition, the number of visitors to its two
websites has continued to rise - up from 192,000 to 244,700 (38%)
on the main site and from 20,000 to 31,000 (55%) on the dedicated
stakeholder pension site.
In contrast, somewhat against the trend, complaint (i.e.
dispute) cases went down from 7,000 to 6,000 - a drop of 18%. Poor
administration remained the largest area for complaints, accounting
for 32% of the total. Approximately 88% of the complaints handled
by TPAS advisers during the year were resolved - up from 86% in
2004/05.
"We are pleased but not surprised", says Malcolm McLean, TPAS
Chief Executive, "that more and more people are coming to us for
the free help and advice we offer. This country has arguably the
most complicated pension system in the world with often
impenetrable rules and no-one should feel embarrassed or inhibited
about seeking confirmation or clarification of their rights and
entitlements. There really is no such thing as a stupid question
about pensions, so never be afraid to ask for information or
explanations and make sure you get it in a form you can
understand."
The report details the main areas of concern including the
continuing closure of final salary schemes, falling annuity rates
and poor investment returns. There was a large increase in helpline
calls in the run-up to A-Day (6 April 2006) on changes to the tax
regime involving Self Invested Personal Pensions (SIPPs),
cashing-in of small pensions (triviality), changes to the limits on
how much tax-free cash people can take on retirement and
alternatives to traditional annuities.
"Contracting-out" of the State Second Pension (S2P) was a
continuing source of difficulty and confusion.
A new formal mediation service to resolve disputes was set up in
April 2005 in conjunction with the Association of Pension Lawyers
and proved very successful. Complaints continued to arise in
relation to poor service (particularly with insurance companies),
teachers' Additional Voluntary Contributions (AVCs) and ill-health
retirement. There were many "success" cases, examples of which are
provided in the report.
Note for Editors
1.The Pensions Advisory Service (TPAS) is an independent body
supported by the Government which exists to provide free
information and guidance to the public on pension matters
generally.
2.TPAS provides a national pensions helpline 0845 601 2923 which
is open 9.00 a.m. to 5.00 p.m. Monday to Friday.
3.TPAS acts as an impartial mediator in pension disputes
involving occupational, personal and stakeholder pensions. It has
no statutory powers and is not authorised to provide
financial/investment advice.
4.TPAS provides a range of leaflets on different aspects of
pensions. Details can be found on its main website
www.pensionsadvisoryservice.org.uk.
5.TPAS also has a website dedicated to stakeholder pensions
www.stakeholderhelpline.org.uk.
