City regulator to probe pension freedoms

The Financial Conduct Authority has promised a major review of new pension freedoms in a move to allow people aged 55 and over to use their pension pot however they wish. It will also include taking a lump sum instead of being forced to buy an annuity. The City regulator is in the lookout to make amendments that will ease people out of the fear of becoming scammed, also focusing on value of money and the ease of switching providers. It is also known that almost two-thirds of pensioners are in for a “nasty surprise” as they begin receiving a state pension income lower than the full “flat rate” amount of £155.65 promised by ministers.