The chief executive of the deVere Group has raised concerns about the implementation of the Freedom & Choice agenda, announced by the Chancellor George Osbourne in 2014.

CEO Nigel Green says changes have been rushed and he expects chaos in April, when the over 55s with defined contribution pensions have unrestricted access to their retirement funds.

"The introduction of the government's much-lauded new pension freedoms seems alarmingly chaotic on many levels," he said.

"The implementation of these landmark changes, which will affect the retirement choices of millions of people and which represent the most radical pensions shake-up in decades, appears to be being rushed in a cynical attempt to woo older voters ahead of May's general election."

Mr Green said the fact a small fraction of pension providers have confirmed that they will be in a position to offer unlimited access in April makes it clear that many pension companies have existing systems that are likely to struggle to cope with adapting to the new rules.
He added the although some companies will have the required systems they may "drag their feet" because allowing lump sum withdrawals means a loss of business.

A further concern was raised by Mr Green in relation to Pension Wise, the government-backed guidance service that aims to educate savers on the changes and their impact.

"There are concerns that Pension Wise will not be properly staffed by the launch on April 6th and worries about the level of expertise of those who have been employed to handle an anticipated initial 300,000 enquiries," he said.

The idea of offering a "one size fits all" approach is also something of a concern, according to Mr Green.

"Everyone has different circumstances and financial needs, wants and dreams and these cannot be appropriately addressed within non-specific guidance in a 30-minute chat.

"This is why tailor-made, independent financial advice is vital – especially during these times of unprecedented change in the pensions landscape.

"Furthermore, there's not been nearly enough public awareness campaigns regarding the implications and costs of early withdrawals of retirement funds.

"Clearly, there's a lot of hard work from a lot of talented people being done, but it's a monumental task to overhaul a complex pensions system in such a short time," he said.

First published 05.02.2015

Lindsay.sharman@hotmail.co.uk