Let the non-advised buyer beware

Nick Bamford

Nick Bamford

Regarding the recent idea from Steve Webb about unwinding annuities, if someone takes advice about what to do with his pension plan at retirement, and that advice is faulty, then he has recourse to complain to the adviser: the Fos if he is not satisfied with the adviser response, and then ultimately the PII sector and FSCS if the adviser firm cannot compensate them.

If someone decides not to take advice (because he does not feel he needs it or he does not want to pay for that service) then he should not have the full protection available to those who took advice.

If we start treating non-advised buyers of products the same as we treat those who pay for such protections then I am afraid that is a very slippery slope indeed.

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Unwinding of annuities that were properly recommended by an adviser or unwinding annuities that were purchased without advice seems to me to be going too far.

In any event, I suspect that this is a desperate attempt by an MP who is highly likely not to retain his seat post-election next year to garner support for his cause.

Nick Bamford

Executive director, Informed Choice, Cranleigh, Surrey