Consumer Skills
matthew
17th April 2020

The Consumer Council welcomes the ABI’s warning against ‘pensions panic’

The Consumer Council welcomes the Association of British Insurers’ latest advice that warns consumers against using their pensions as a quick way of raising cash during this uncertain time.

This comes as the Association of British Insurers (ABI) raised concerns that people could be tempted to use the pension freedoms to access their pensions at age 55, without thinking through the longer term consequences, or falling prey to pension scammers who might be looking to take advantage of unsuspecting consumers.

The ABI recommends that consumers:

  • Think twice before taking money out of their pension if the rules allow it;
  • Get authorised financial advice or guidance before making any decisions;
  • Avoid responding to unsolicited phone calls, texts or online offers of pension reviews; and
  • Never rush into making pension decisions.

John French, Chief Executive at The Consumer Council, said: “We welcome the ABI’s warning against ‘pension panic’ and encourage consumers to follow the ABI’s advice closely including thinking twice before taking money out of their pension and avoiding responding to any unsolicited calls, texts or online offers.”

John added: “We are in uncertain times, which can understandably cause added stress and worry. Therefore, it is more important than ever for consumers to take extra care and consideration when making financial decisions at this time – especially regarding their pensions.”

Note:

The ABI’s press release is available here.