Pensions freedom could be 'next major mis-selling scandal', MPs warn

Frank Field: 'We cannot afford another scandal'

Pensions freedom could end up being the "next major mis-selling scandal" in financial services due to insufficient consumer support, a group of MPs has warned.

A report from the work and pensions select committee said pensions freedom on its own was insufficient - people must also have the "freedom to make well-informed decisions". Pensions freedom and choice was introduced in April this year. It gave defined contribution pension savers over the age of 55 complete access to their pension pots, subject to taxation. People who usually went down the annuity route were given the chance to cash in their funds or use income drawdown for the first time. The select committee, which launched its investigation in July, said lack of regulatory clari...