Wednesday, October 12, 2011

Mis-selling warning on new plan for pensions as millions could be victims of Government-sponsored rip-off

Millions of workers could be the victims of a Government-sponsored pensions rip-off which could halve the value of their investment, a leading fund manager warned yesterday.

David Pitt-Watson said plans to force all bosses to set up pensions for their workers are riddled with major problems.

Questioned by MPs, he predicted ‘headline after headline after headline about pensions that have been mis-sold’.

He fears Britain is storing up another disaster on a par with the mis-selling of payment protection insurance which triggered a £5billion compensation bill.

His concerns surround the introduction of rules which for the first time will oblige employers to set up pensions for their workers, which both they and the employee will contribute to.

At present only a third of private sector workers are paying into a pension, which means the majority do not have a single penny in a nest egg to pay for their retirement. Read More