Thousands of members 'trapped' by small pension pots

Barnett Waddingham consultant Malcolm McLean said people with pension pots under £5,000 were facing significant problems securing annuities as most insurance companies will not quote on pots below that level or offer extremely poor rates if they do. McLean said: "It is clearly quite wrong that someone who has saved money in a pension plan cannot at the end of the day benefit from that plan either by turning it into a pension or taking the money back in cash under the trivial pension rules. "But that is exactly what is happening when for example someone has a small personal pension on ...