The pension changes introduced in April this year were routinely attacked on the conference floor at UNISON’s national delegate conference with one speaker describing them as a “relentless race to the bottom in pension provision”.
The changes allow the over 55s to cash in their entire ‘pension pot’ and take the money straight away as a lump sum.
One of the starkest warnings was that people cashing in would be liable to pay tax – up to 75% of the pension pot could be taxable and many warned that many members would run out of money – “We don’t want to see our members in the 21st century workhouses,” said one.
But there are other dangers including the potential for mis-sold investments and scams to “liberate” pension money at a cost of extortionate fees and the risk of losing it entirely, plus the obvious dangers of trading in a secure retirement pension, linked to inflation, for insecure short-term gain.
“If you think PPI nuisance calls are a problem, wait until you start getting the pension ones,” warned one speaker.
Several speakers noted the advantages for the government’s income and that of big business and the City of London from and others noted that the mandatory requirement to take independent fincancial advice was welcome, “but a telephone call is not enough”.
One speaker declared that members were ready to fight for their pensions as “the pension safety net has been replaced by a financial free for all”.
