Advisers fear pensions freedom reversal

Andy Bell, Chief Executive of AJ Bell, said:

“Whilst we welcome the additional flexibility available to savers, our poll showed that many advisers are as concerned as us that the new rules could be reversed sooner rather than later if we see a non-conservative Government come into power. It is of major concern that a non-Conservative Government will decide that the changes have gone too far, too soon and will scrap or seriously water down the changes. If this happens we risk destroying the public’s faith in pensions."

He added:

“The political uncertainty could create a 'buy-now-while-stocks-last' mentality with savers feeling they have to act quickly before the rules are changed.  This could result in many people encashing their pensions irrespective of whether they have a genuine need for the money, political pressure and a fear of change has a history of driving knee jerk reactions when it comes to savings.”

Advisers who attended the AJ Bell Investival appear to share these concerns. When asked to vote via an app specially created for the event 64% did not believe the new rules would last more than a year after the May General Election, if there was a change of Government, and 60% said they felt the new pension flexibility rules have gone too far too soon.