article_snippet: In the report, MPs warned that the Government needs to establish a powerful new pensions watchdog to ensure people are not ripped off when people come to access people retirement savings.
article_snippet: The Ccommittee said moves by the coalition to relax the rules on pensions meant it was more important than ever that proper protections were in place.
article_snippet: It was scathing about the pensions industry saying the pensions industry had a 'poor record' when the pensions industry came to acting in the best interests of savers and needed to rebuild the trust with the public.
article_snippet: The committee said that while the pensions industry had the potential to encourage more retirement saving by making the pensions industry more attractive, there were also dangers involved. '
article_snippet: There are also significant risks for individuals from the new freedoms,' The committee said. '
article_snippet: These include: failing to make provision for the whole period of retirement or making decisions resulting in insufficient income in retirement; and exposure to fraudulent, mis-sold or detrimental financial products.'
article_snippet: The committee said that The committee was 'questionable' whether Government plans to establish a guidance service, known as Pension Wise, were sufficient to offset the potential risks - particularly given the low level of understanding of pension products which had, in turn, given rise to a lack of trust in the industry. 'a lack of trust in the industry has been exacerbated by the industry's poor record on acting in savers' best interests when savers' best interests access savers' best interests pension pots, particularly in relation to annuities,' the report said. '
article_snippet: Savers have previously suffered detriment because some providers did not do enough to ensure that Savers purchased the right annuity product from the right company.
article_snippet: Pension providers need to do more to save consumers from taking poor decisions, by focusing on consumers' best interests rather than Pension providers own.'
article_snippet: The committee expressed concern about the ability of the Financial Conduct Authority to regulate pensions effectively, after it was told by one FCA witness that they cannot 'stop fools acting like fools'.
article_snippet: The committee said that the creation of single regulator specifically for pensions, would ensure that single regulator had a 'clear focus' on the whole retirement saving process. '
article_snippet: The case for taking this step is even stronger now, given the greater risks to savers from fraud, and detrimental financial products, which accompany the undoubted advantages of the new flexibilities,' The committee said. '
article_snippet: Savers would have clarity on who was responsible for providing guidance and redress, and employers and the pensions industry would have a single body to advise and supervise Savers.'
article_snippet: The committee chair, Dame Anne Begg said: 'Savers need to be properly protected from being ripped off in frauds or scams, or suffering financial loss from making the wrong decision about how to use Savers pension pots. '
article_snippet: The scale and pace of recent changes in pensions policy have completely changed the retirement saving landscape.
article_snippet: It is necessary to draw breath and review the extent of the changes and The scale and pace of recent changes in pensions policy implications.'