Ian McKenna: Beware the bubbling master trust misselling scandal
Advisers must make it clear to employers how much better off staff will be with a workplace pension from a progressive provider
By Ian McKenna 16
th April 2021 7:41 am
If more than 10 million people were directed into poor pensions by advisers, there would be a misselling review on the scale of payment protection insurance. Yet, in the past decade, employers, encouraged by all political parties and much of the master trust community, have done exactly that. This is a problem that needs fixing urgently.
At one level, automatic enrolment has been a huge success. Well over 20 million people now contribute to workplace defined contribution schemes who did not a decade ago.
So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money , says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download
In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme members in the world of pensions.Download
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