:00:00. > :00:12.Have you stashed enough cash or will you be left short when you retire?
:00:13. > :00:19.I am working. I need the extra money. I don't think what pdople
:00:20. > :00:21.realise living on a pension. We jump aboard the pension
:00:22. > :00:24.express to find out why the wheels Who has got a pension? OK, who
:00:25. > :00:33.hasn't got a pension? And even if you have saved tp,
:00:34. > :00:44.could the scammers be There are numerous people who have
:00:45. > :00:49.said to me that they sometiles feel the only way out of this misery is
:00:50. > :00:50.to commit suicide. That is no escape.
:00:51. > :00:59.This is Inside Out and I'm Chris Jackson.
:01:00. > :01:01.So what are you planning for retirement?
:01:02. > :01:04.Long leisurely walks in the countryside, playing gardening,
:01:05. > :01:10.But what if you can't afford to stop working?
:01:11. > :01:13.As I've discovered there ard a growing number of people here who
:01:14. > :01:31.The country's workforce is getting older.
:01:32. > :01:38.For many people, this is not a choice. They have two work longer. I
:01:39. > :01:41.can't retire because I can't afford to. I am just able to survive now.
:01:42. > :01:44.With fewer people saving, the number of pensioners having to
:01:45. > :01:56.I need to have a little bit extra money. My pension is not enough
:01:57. > :01:59.The people of the north east are the worst in the country whdn it
:02:00. > :02:04.In fact the latest government stats show that nearly a third
:02:05. > :02:06.of households here don't have any private pension whatsoever.
:02:07. > :02:10.But if you thought you could just retire and rely on the statd,
:02:11. > :02:23.Can we help you save on your energy bills?
:02:24. > :02:35.Most of the staff members here are in their early 20s.
:02:36. > :02:40.One notable exception is Charles West.
:02:41. > :03:07.What is your date of birth, please? 1971. What are you doing here?
:03:08. > :03:12.Working. I need to. I need the extra money. The pension isn't enough I
:03:13. > :03:14.don't think they realise wh`t it is like to try to live on a pension.
:03:15. > :03:18.So to supplement what he receives from the state,
:03:19. > :03:23.Charles works the phones fotr hours a day for an energy company.
:03:24. > :03:32.There is nobody cheaper than we are. Why didn't you save when yot were
:03:33. > :03:39.younger? I was made redundant. If a firm takes over your firm, they sack
:03:40. > :03:47.their laps and put their own in place. So you weren't able to save
:03:48. > :03:55.in your lifetime? No, not at all. I'm losing my voice again. Ht is all
:03:56. > :04:00.the talking you do. What it is like being surrounded by these young
:04:01. > :04:06.people. Great. They keep me young. Save that as much as you can. Do
:04:07. > :04:23.they listen to you? They ard too young, they don't care. Good start?
:04:24. > :04:27.Good. We do get a lot of older customers bringing in. It is good
:04:28. > :04:38.that he can use his stories to get the sale. The only requiremdnt he
:04:39. > :04:44.has at times is his technology. Put in your password. Happy days,
:04:45. > :04:51.sorted. You don't find it odd that he is he a? I did at the st`rt. But
:04:52. > :05:06.he grows on you. He is like one of the lads. Another sale. Another
:05:07. > :05:10.sale. Thank you. Not bad at all I am very pleased. You are finished
:05:11. > :05:17.now. I have been finished four years! Do you think you will have to
:05:18. > :05:31.keep on working? Yes. How c`n I live otherwise? They are going to carry
:05:32. > :05:34.you out in a box? Yes. Charles isn't as unusual as you think.
:05:35. > :05:36.The number of over`65s still working h`s more
:05:37. > :05:43.There are now over one million working pensioners.
:05:44. > :05:47.So at the time of your life when you thought you might be out watering
:05:48. > :05:55.the garden, you might be sttck in the office at the water cooler.
:05:56. > :06:01.It is one of the greatest achievements of mankind that we are
:06:02. > :06:06.living longer. The critical issue is we need to plan for this. This is an
:06:07. > :06:13.education issue in schools to help people plan for later life. Invest
:06:14. > :06:16.in both income and health bdcause the prevention of AIDS`related
:06:17. > :06:22.condition such as diabetes, stroke, heart disease is critical. `` of
:06:23. > :06:25.health related conditions. Staying fit is vital
:06:26. > :06:36.for 70`year`old Pat Thompson. Seven o'clock in the morning and I
:06:37. > :06:38.am about to start by paper round. I hope it doesn't rain.
:06:39. > :06:44.Pat retired three years ago with just a small private pension.
:06:45. > :06:51.She's since had to take on two part time jobs.
:06:52. > :06:57.And she depends on her bike for both of them.
:06:58. > :07:06.I am extremely lucky my health is good. The fact that I have had a
:07:07. > :07:16.head and to knee replacements has helped enormously. `` hip. Hf your
:07:17. > :07:22.health happens been improved like that, you might thus be abld to do
:07:23. > :07:28.the work you need? I wouldn't, no. I you keeping your head above water?
:07:29. > :07:40.Just about. So these jobs aren't about phone? No. It is that's close
:07:41. > :07:44.to the bone? Deserts will you? Sometimes. But now I have t`ken
:07:45. > :07:45.steps to improve things, I `m not so scared.
:07:46. > :07:47.Many more pensioners will bd following in Pat's tracks,
:07:48. > :07:57.We need more in place to have good pension schemes. We have sedn
:07:58. > :08:03.stagnation in wages and for many people in the north`east, the
:08:04. > :08:07.priority is how they tackle their cost of living. How they get through
:08:08. > :08:11.the week, how they get throtgh the mud, how the feed and clothd their
:08:12. > :08:14.family. For many workers we speak to, paying into a pension isn't
:08:15. > :08:24.absolute luxury for them. For Charles, another day of work
:08:25. > :08:44.at the call centre is over. Just a small loaf I get and there
:08:45. > :08:49.aren't any. I am going to h`ve those, they are produced. How does
:08:50. > :09:05.the maths add up for you? I just about get through. I get a ` week.
:09:06. > :09:11.`` ?169 week. How much goes out Things like gas and Electric, ? 09 a
:09:12. > :09:19.month. I have got about 60 or ? 0 a week. That is not a lot. No. How
:09:20. > :09:28.would you cope with that? Jtst take care, don't spend a lot. Anxthing
:09:29. > :09:35.you miss you would like to get? Not really, no. I don't think so.
:09:36. > :09:47.Luxuries `` are there any ltxuries you can afford? Not really, apart
:09:48. > :09:58.from the odd beer. That's md, thank you ladies. I can't buy you the kind
:09:59. > :10:03.of clothes I'd like to wear. I like to wear nice clothes. I do find I
:10:04. > :10:07.have to go into charity shops and have a look round and see if there
:10:08. > :10:11.is anything there for me. If it is a special occasion, I do panic quite a
:10:12. > :10:22.lot because I think what can I possibly where? That is ?7.25. Keep
:10:23. > :10:28.on smiling. I you leading the life you hoped you would lead now? No, I
:10:29. > :10:37.did think it'd be nice to h`ve a relaxed retirement where I could sit
:10:38. > :10:42.and enjoy the view. It has been a pleasure talking to you. I wish
:10:43. > :10:53.everybody was exactly like xou. Due you wish you had set money `side?
:10:54. > :10:55.Yes, yes they do. But I didn't so I am stuck with it.
:10:56. > :10:58.Charles and Pat both wish they'd been able to save earlier in life.
:10:59. > :11:01.But a survey for BBC Inside Out has reve`led that
:11:02. > :11:04.almost one in five people don't trust pensions companies and almost
:11:05. > :11:07.as many are looking for othdr ways to save for their old age,
:11:08. > :11:23.Jon Cuthill has been on a road trip to investigate.
:11:24. > :11:27.Previous generations retired at 60, got on with the gardening and were
:11:28. > :11:34.But with life expectancy continuing to rise, even if we retire later,
:11:35. > :11:41.These days most of Britain's workers don't have a pension sorted,
:11:42. > :11:45.which could leave us relying entirely on the state or like our
:11:46. > :11:51.65`year`old bus and its 70`xear`old driver Mervyn, still working.
:11:52. > :11:53.I enjoy it and I'm part of the business.
:11:54. > :11:57.It's a nice job, you meet nice people so while I can,
:11:58. > :12:05.I did invest into a pension but it went down the pan.
:12:06. > :12:10.And where better to meet th`n the Pensioners Pub.
:12:11. > :12:14.Half of our passengers on our 1949 Bedford bus are retired.
:12:15. > :12:17.The other half are pension refuseniks, a handful of Brhtain's
:12:18. > :12:22.13 million company employees who don't have a private pension.
:12:23. > :12:26.The government's rolling out a scheme to try to put that right.
:12:27. > :12:32.Auto enrolment makes it a legal requirement for companies to
:12:33. > :12:38.But if you earn less than ?10,000 you won't qualify.
:12:39. > :12:42.And anyone self`employed will have to sort themselves out.
:12:43. > :12:47.Here's a question for you, who has got a pension?
:12:48. > :12:57.Saving up for a pension, putting money aside each month just
:12:58. > :13:03.I'm Adam Fox, I'm 27 and I'm a senior colour technician.
:13:04. > :13:07.I get paid ?500 a month so there's no extra funds there
:13:08. > :13:23.I'm still doing my studying so it's not beneficial to md to pay
:13:24. > :13:38.Hilda's celebrating her 100th birthday today.
:13:39. > :13:42.These days you're 44 times lore likely to do the same than 60 years
:13:43. > :13:45.ago which has prompted the government to make the most sweeping
:13:46. > :13:54.Time to make room on the bus for Minister of State for Pdnsions
:13:55. > :13:58.Steve Webb, the man responshble for the radical reforms.
:13:59. > :14:00.The first thing we've got to do is get millions of people
:14:01. > :14:04.into a pension at all, parthcularly starting with young people, then
:14:05. > :14:09.8% of your salary, for most people, won't give you
:14:10. > :14:12.It's a start but we've got to build on that.
:14:13. > :14:17.Once you get a pension you're going to be nailed by chargds.
:14:18. > :14:21.In the past, too many people have been rhpped
:14:22. > :14:26.These new workplace pensions will be different because wd're
:14:27. > :14:31.From next April, more than 99 pence in a pound that
:14:32. > :14:34.you put into a pension will go into a pension not into charges
:14:35. > :14:37.So they will be the best value pensions, particularly becatse firms
:14:38. > :14:40.are putting money in as well, one of the best things you can invdst in.
:14:41. > :14:43.With a captive audience Steve Webb can't resist the opportunitx to
:14:44. > :14:48.Tell me about your pension experience?
:14:49. > :14:55.I do weddings and events, things like that and I don't think
:14:56. > :14:58.a return you get from a pension is going to be valid.
:14:59. > :15:01.Instead of a pension he's opted for a buy to let.
:15:02. > :15:06.My property's going to be rdnted out to students in Southampton.
:15:07. > :15:09.A really high student population there.
:15:10. > :15:13.It's right in the centre of town, a wicked location and it's `lways
:15:14. > :15:32.The people who think it is too hard, there is always something
:15:33. > :15:35.that'll make it easier for them search if they work for an dmployer
:15:36. > :15:41.it could be the employer cotld contribute into the pension scheme.
:15:42. > :15:46.Phone people like this and we can give people little hints to make it
:15:47. > :15:47.helpful. Don't rely on one service of income on retirement. Don't just
:15:48. > :16:03.rely on property. Things are different
:16:04. > :16:06.on the retired side of the bus where some have the sort of gold plated
:16:07. > :16:09.final salary schemes that anyone who's signing up to a pension now
:16:10. > :16:12.will probably never get. I don't see myself as being
:16:13. > :16:14.in any way privileged. I see myself as having workdd
:16:15. > :16:17.in public service for a rel`tively reasonable salary but the attraction
:16:18. > :16:20.of it was always the reason`ble My pension is pretty good rdally
:16:21. > :16:24.because it's index linked and I know from year to year exactly what
:16:25. > :16:54.it is I'm probably going to get Recently ?17,000 per household was
:16:55. > :16:59.quoted as the amount needed When you're young you don?t think
:17:00. > :17:08.about 40 years hence, do yot? It creeps up on you until you get
:17:09. > :18:28.to about 45, 50, and you thhnk. side of the bus, you're not alone,
:18:29. > :18:31.there's lots of people like you However, the main message h`s to be
:18:32. > :18:36.if you don't save for your later The state pension, certainlx
:18:37. > :18:42.for those who are relativelx young now, is changing dramatically
:18:43. > :18:48.and from 2016 inwards, younger people will know that when they get
:18:49. > :18:54.to retirement the state pension is Now if you think you'll be happy
:18:55. > :19:02.living on ?20 a day for the rest of your life when you've re`ched
:19:03. > :19:11.retirement, fine don't do anything. So it's all about being prepared,
:19:12. > :19:13.or is it? I was planning to start sorting out
:19:14. > :19:17.my pension at the age 40 whhch, after today,
:19:18. > :19:21.I've realised is far too late. The property is going well so I m
:19:22. > :19:25.happy with how things are going One thing's for certain thotgh,
:19:26. > :19:30.when it comes to keeping our heads above water when we retire we're all
:19:31. > :19:48.going to have to plan ahead. You'd like to think any mondy you do
:19:49. > :19:52.save towards a pension is s`fe, but we ve gone undercover to expose
:19:53. > :19:55.one of the biggest scams When we take out a pension,
:19:56. > :20:02.it's all about securing our future. But what happens if I want to
:20:03. > :20:11.cash mine in before I'm 55? Well according to some
:20:12. > :20:14.companies age is no barrier. In fact that?s what they call it,
:20:15. > :20:20.pension liberation. When John, not his real namd,
:20:21. > :20:24.from Sussex needed to free tp some I'd been unemployed for abott two
:20:25. > :20:32.years hardly earned any mondy. I've got a wife, two kids and,
:20:33. > :20:36.you know, I was struggling really badly financially, in debt, and was
:20:37. > :20:41.basically offered up to 50% of your pension fund before thd age of
:20:42. > :20:46.55 and my main concern when I first heard about it was obviouslx firstly
:20:47. > :20:51.that it was legal and secondly you know that xou
:20:52. > :20:55.weren?t going to get taxed on it. The scheme freed up ?47,000 in cash
:20:56. > :21:01.but John's relief was short lived. First the pensions' regulator
:21:02. > :21:04.and then the high court ruldd he'd taken what?s called
:21:05. > :21:08.an unauthorised payment. I can't tell you how extremdly
:21:09. > :21:12.stressful that was because I'd made great pains to make
:21:13. > :21:19.sure that the loans were legal. I thought it was
:21:20. > :21:21.the only way to get out of The great thing about pensions
:21:22. > :21:31.is that they are tax efficidnt. In other words, we get tax relief
:21:32. > :21:34.on them to encourage us to save And if you try to cash yours
:21:35. > :21:42.in before you're 55, cutting those You'll have to pay up to 70$
:21:43. > :21:54.of what you get back in tax. You actually cannot take anxthing
:21:55. > :22:08.from your pension until age 55. Now he owes the taxman thousands
:22:09. > :22:26.of pounds. Many of the people here had
:22:27. > :22:34.joined the same scheme. Some, as they've told me,
:22:35. > :22:36.face financial ruin. It's why they formed
:22:37. > :22:42.this support group. The people who were selling these
:22:43. > :22:45.schemes were very, very crafty, very clever, very slick,
:22:46. > :22:58.very convincing and they believed There are numerous people who have
:22:59. > :23:02.said to me, that they somethmes feel the only way out of this misery is
:23:03. > :23:03.to commit suicide because there is no escape.
:23:04. > :23:06.For those of us stuck in a financial hole, freeing up
:23:07. > :23:09.our pension pot might seem like the light at the end of the tunnel.
:23:10. > :23:12.But the people I've met so far say they were kept
:23:13. > :23:15.That's why I?m doing my own research.
:23:16. > :23:17.I want to find out if companies are really telling
:23:18. > :23:25.I can cash my pension in early and not pay tax.
:23:26. > :23:29.So we'll start with the initial pension, ?37,600.
:23:30. > :23:32.Now this company is going to take away a certain amount in feds.
:23:33. > :23:40.What you're left with is ?24,83 which is 68% of your pension.
:23:41. > :23:45.What it doesn't tell you is that HMRC are going to take a further
:23:46. > :23:52.55%, minimum, which leaves xou with about 10% left of your penshon.
:23:53. > :23:56.But are companies setting ott to mislead or just being short
:23:57. > :24:02.I'm hoping a few calls will help me to find out.
:24:03. > :24:05.We've chosen a selection of companies at random and H've
:24:06. > :24:09.asked pensions expert Richard Jacobs to listen in.
:24:10. > :24:11.I'm just wondering if you guys could help?
:24:12. > :24:15.I'm pretending I'm 48, so if I did cash in my penshon there
:24:16. > :24:22.You can't get money out of your pension before the age of 5.
:24:23. > :24:23.So the first company knows the rules.
:24:24. > :24:29.Ok, so you never know, maybe I won't be misled.
:24:30. > :24:32.Operation Scorpion might have something to do with that.
:24:33. > :24:36.It's what the police and pensions regulator are calling
:24:37. > :24:37.their crackdown on pension liberation companies.
:24:38. > :24:41.Since being set up it's invdstigated a sector worth almost half
:24:42. > :24:56.I want to know what Richard thinks of them.
:24:57. > :25:00.I'd just like you to listen and pick out the wrongdoings gohng on.
:25:01. > :25:06.We've made clear I?m under 45 but need cash and fast.
:25:07. > :25:10.The moneys are 20% of the v`lue of your transfer
:25:11. > :25:14.and those moneys are paid b`ck to you through another channel.
:25:15. > :25:18.Effectively you switch your pension fund and you will receive 20%
:25:19. > :25:24.Already you're licking your lips at this.
:25:25. > :25:33.Whoever that business is, if money is coming out it's got to
:25:34. > :25:38.There?s no money magic'd from anywhere
:25:39. > :25:43.but that is pension liberathon whatever name they put on it.
:25:44. > :25:52.In fact, of the nine companhes we contacted online and on the phone,
:25:53. > :26:05.The money is not coming out of the pension fund. That isn't out an
:26:06. > :26:18.outcome. He is going to losd his pension. That is some message. Well
:26:19. > :26:26.the next be just as misleadhng. That is dreadful.
:26:27. > :26:29.In fact, of the nine companhes we contacted online and on the phone,
:26:30. > :26:51.The message we need to get out to consumers is that anybody comes and
:26:52. > :26:54.offers access to your pension scheme before 55 they are telling xou
:26:55. > :27:01.alive. You need to walk awax very fast indeed. But if people `re still
:27:02. > :27:08.being misled, why are the vhctims paying? I'm hoping Ruthann can
:27:09. > :27:12.answer that question. There are some innocent people here being stung
:27:13. > :27:17.left right and centre. You telling me people actually have to pay this
:27:18. > :27:26.back even if they didn't know it in the first place? If there w`s a tax
:27:27. > :27:29.due H M RC has apply. If yot have accessed money from your pension pot
:27:30. > :27:33.that breaks the rules then we do have to charge you the tax because
:27:34. > :27:38.you got tax relief you were not eligible to receive. You will be
:27:39. > :27:45.charged. What is there to protect the consumer? I have seen m`ny
:27:46. > :27:50.cases, really tragic circumstances, where people have been misldd and
:27:51. > :27:53.lost their savings. I do fedl for the people involved. Some are real
:27:54. > :27:59.innocent victims in these situations. But from a tax point of
:28:00. > :28:03.view, we have to do apply the rules equally and fairly and if you have
:28:04. > :28:08.chosen to take your pension out of the safety of the retirement pension
:28:09. > :28:21.pot then tax will apply. A lessened the victims are learning thd hard
:28:22. > :28:30.way. It never leaves you mine. You are never able to relax. Opdration
:28:31. > :28:32.Scorpion is helping to raisd awareness but as you can sed,
:28:33. > :28:39.victims are still getting stung It?s great to hear what you think
:28:40. > :28:42.and your suggestions Next week, the recycling cowboys who
:28:43. > :28:51.employ cows to do the dirty work. Until then, from Inside Out,
:28:52. > :29:05.goodnight. Hello, I'm Ellie Crisell with
:29:06. > :29:07.your 90 second update. There's no return
:29:08. > :29:11.if you decide to leave the UK.