The government expects some people to "make the wrong choices" and receive a worse outcome than under the existing system when changes designed to give retirees the power to do as they wish with their savings are rolled out in the spring, pensions minister Steve Webb has warned.
It is to be expected that mistakes will happen under the new freedoms, Webb told delegates at a conference on 17 November. But he said this would not disprove the value of the reforms announced by the Chancellor in his March Budget. "This coming April some people will get it wrong," Webb said in a speech at the ICAEW Retirement Savings Summit in London. "They will make the wrong choices. They will get a worse outcome than if they had, for example, fully taken up our guidance or paid for advice, or if they had bought an annuity. "Some people that will happen to - that's what happ...
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