7th May 2015
Concerns are rising over the future of UK pensions as the population heads to the polls.
Scott Mullen, director at My Pension Expert, has warned that “the political future of the country hangs in the balance today” with a high level of uncertainty surrounding the outcome of who will be leading the country.
He said: “Its long term impact on pensions is currently unclear but given that the recent pension freedoms are barely a month old it’s clear that stability is the best option.”
The introduction of the pension freedoms was the biggest overhaul to the pension system to occur in living memory and provided retirees fewer restrictions on how they can use their pension pots than ever.
However this freedom, urged Mullen, has brought with it understandable complications and confusion as both retirees and providers alike try to get to grips with it.
“Teething problems are always to be expected whenever major policy changes ensue. As the dust begins to settle though it’s clear to us based on the customers that we deal with on a daily basis that the majority believe they are now better off under the freedoms,” he said.
“Additional disruption and policy change would further confuse retirees and cause major disruption to providers who all already in the midst of adjusting to the new pension frontier.”
Overall Mullen believes this backdrop could have a massive impact on the retirement market, similar to what occurred when the pension revolution was announced, with provider share prices tumbling along with annuity rates.
He said: “This is why stability is needed more than ever in the pension system, whatever the outcome of the election. That way everyone can get the most out of the legislation that is currently in place.”