A capacity crunch among providers trying to process requests to access to their pension pots is the biggest threat to the pension freedoms in the short term and risks creating disillusionment among consumers, The Pension Advisory Service (TPAS) chief executive has warned.
Michelle Cracknell (pictured) said consumers are not aware of how challenging it will be for providers to process more than 500,000 requests from consumers to access their pensions from April, as estimated by the Treasury. Normally the process takes about two weeks but Cracknell said overcrowding in the market could lead to delays, which some people might find frustrating. The industry could "mess it up" as more consumers become disillusioned with the process, she warned. From April, those aged 55 plus will be able to access their pots under radical reforms undertaken by the govern...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
