TPAS publishes annual report for 2005/06
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.
