:00:00. > :00:15.Beware of the pension piratds that could cost you dear.
:00:16. > :00:21.USwitch pension fund and yot will receive 20% of the value of your
:00:22. > :00:21.investment. `` if you switch your pension front.
:00:22. > :00:24.And we?re asking, is it ever too late to start filling
:00:25. > :00:32.We give the women of Stoke on Trent a financial MOT.
:00:33. > :00:38.Have you got anything planndd? Have you thought about a pension? No
:00:39. > :00:51.I?m Andy Akinwolere and this is Inside Out.
:00:52. > :00:54.But first tonight, Inside Out's been digging down into
:00:55. > :00:56.some of the reasons so many people don?t have a private pension.
:00:57. > :01:03.In fact, we commissioned an exclusive survey.
:01:04. > :01:10.So, 39% of people who took part in our exclusive survey, they thought
:01:11. > :01:15.it was too expensive. 28% thought they were too young. 27% hadn't even
:01:16. > :01:22.thought about it. But there is another reason. Many people simply
:01:23. > :01:25.do not trust pension companhes. I went undercover to expose one of the
:01:26. > :01:31.When we take out a pension, it?s all about securing our future.
:01:32. > :01:59.But what happens if I want to cash mine in before I?m 55?
:02:00. > :02:02.Well according to some comp`nies age is no barrier ? sounds liberating!
:02:03. > :02:04.In fact that's what they call it ? pension liberation.
:02:05. > :02:08.When John ` not his real nale ? needed to free up some cash,
:02:09. > :02:14.I had been unemployed with hardly any money. I had a family and was
:02:15. > :02:21.struggling badly. I was in debt It offered up to 50% off your pension
:02:22. > :02:28.fund. That was before the age of 55. My main concern was that firstly
:02:29. > :02:41.that it was legal and secondly that you were not going to get t`xed The
:02:42. > :02:47.scheme freed up cash but thd joy was short`lived. I cannot tell xou how
:02:48. > :02:54.extremely stressful it was. I have made great pains to make sure the
:02:55. > :02:58.loans were legal. I thought it was the only way of getting out of my
:02:59. > :03:06.financial quagmire at the thme. But it was about to get worse. The great
:03:07. > :03:11.thing about pensions is that they are tax deficient. We get t`x relief
:03:12. > :03:16.to encourage us to phase `` save, but there are strings attached. If
:03:17. > :03:21.you try to cash is in beford you are 55, cutting those strings whll cost
:03:22. > :03:39.you a fortune. You have to pay up to 70% of what you get back in tax
:03:40. > :03:44.Reputable companies make th`t clear. You actually can't take anything
:03:45. > :03:50.from your pension until age 55. It is important people know th`t. But
:03:51. > :03:55.John, not his real name, didn't Now he owes the taxman thousands of
:03:56. > :04:00.pounds. The ramifications for me and my family are horrendous. It could
:04:01. > :04:03.potentially ruin my life. John is not alone. Many of the people here
:04:04. > :04:08.have joined the same scheme. Some, as they have to face financhal ruin.
:04:09. > :04:14.It is why they formed the stpport group. The people who are sdlling
:04:15. > :04:19.these schemes are very crafty and clever, very slick, very convincing.
:04:20. > :04:24.They believe them. That is the tragedy. What is the emotional
:04:25. > :04:28.impact? It has been devastating There are numerous people who have
:04:29. > :04:31.said to me that they sometiles feel the only way out of the misdry is to
:04:32. > :04:39.commit suicide because therd is no escape. For those of us stuck in a
:04:40. > :04:42.financial hole, freeing up the pension pot might seem like the
:04:43. > :04:45.light at the end of the tunnel but the people I have met so far say
:04:46. > :04:51.they were kept in the dark `bout tax. That is why I am doing my own
:04:52. > :04:55.research. I want to find out if copies are really telling pdople age
:04:56. > :05:02.doesn't matter. I can cash ly pension in early, not pay t`x. We
:05:03. > :05:07.will start with the initial pension, 37,600. This company will
:05:08. > :05:15.take away a certain amount of fees. What you are left with is 24,00 ,
:05:16. > :05:22.68%. What it doesn't tell you is that HMRC are going to also take a
:05:23. > :05:29.further 55%, minimum, which leaves you about 10% of your pension. That
:05:30. > :05:34.is a frightening thought. Otr company `` are companies setting out
:05:35. > :05:38.to mislead or just short on facts? I am hoping a few calls will help me
:05:39. > :05:42.find out. We have chosen a selection of companies at random and H have
:05:43. > :05:47.asked a pensions expert to listen in. I was wondering whether you guys
:05:48. > :05:53.could help. I am pretending to be 48. If I did cash in my pension
:05:54. > :05:56.there would be taxed to pay. You can't take money out of the pension
:05:57. > :06:05.before the age of 55. The fhrst company knows the rules, so, maybe I
:06:06. > :06:09.will not be misled. Operation Scorpion might have
:06:10. > :06:12.something to do without. It is what the police and pensions regtlators
:06:13. > :06:17.are calling their crackdown on page liberation companies. It has
:06:18. > :06:22.investigated a sector worth almost half a sector worth almost half a
:06:23. > :06:25.billion pounds. Are its tactics working? We have been making a few
:06:26. > :06:28.more calls. I want to know what Richard thinks.
:06:29. > :06:33.I would like you to listen `nd try and pick out the wrongdoing that is
:06:34. > :06:36.going on. We have made it clear I am tnder 55
:06:37. > :06:47.that need cash, and fast. The monies generated are 20$ of the
:06:48. > :06:50.value of your transfer and `re paid back to you through another
:06:51. > :06:53.channel. Effectively, you switch your pension fund and you whll
:06:54. > :06:57.receive 20% of the value of your investment. You are shaking your
:06:58. > :07:06.head already and licking yotr lips at this! What are we hearing? A
:07:07. > :07:09.scam. Whoever that businessds, if money is coming out, it has got to
:07:10. > :07:14.come from somewhere. There hs no money magic. That is pension
:07:15. > :07:20.liberation, whatever name they put on it.
:07:21. > :07:26.He knows I am under 55, so H will have to pay tax, right? No, because
:07:27. > :07:34.the money is not coming out of the pension fund. No tax liabilhty? That
:07:35. > :07:39.is an out and out con. He is going to lose his pension. That c`se, he
:07:40. > :07:47.is good to lose his pension. Wow, that is some message. Will the next
:07:48. > :07:52.be just as misleading? We c`n get you 20% cashback with no li`bility
:07:53. > :07:57.whatsoever. That is dreadful. Of the nine countries we contacted and
:07:58. > :08:01.online `` maenad on the phone, four gave misleading advice. That has
:08:02. > :08:05.left me feeling as miserabld as the weather, so what is the pensions
:08:06. > :08:09.regulator doing? We have rahsed awareness with the police. The
:08:10. > :08:13.important thing is to raise awareness with consumers. I think it
:08:14. > :08:20.would be a 0`sum game if we try to sit `` shut down every webshte. If
:08:21. > :08:23.anyone comes to you and offdrs you access to your pension before 5 ,
:08:24. > :08:31.they are telling you a lie. You need to walk away very fast indedd.
:08:32. > :08:37.Yeah, and told the victims `nd their advisers know it. I am playhng them
:08:38. > :08:41.something they really need to hear. The money is generated at 20% of the
:08:42. > :08:46.value of your fans were on those monies are paid back through another
:08:47. > :08:52.channel. How does that make you feel? The same spiel over and over
:08:53. > :09:00.again. I am horrified it is still continuing. It is just shocking The
:09:01. > :09:04.per consumer does not know the suffering. I couldn't believe what I
:09:05. > :09:09.was listening to today. It was a complete codswallop. If people are
:09:10. > :09:14.still being misled, why are the victims paying? I am hoping Ruth
:09:15. > :09:19.Owen can answer that question. She is the director`general of personal
:09:20. > :09:24.tax and Revenue and Customs. There are people being stung left, right
:09:25. > :09:27.and centre. Do people actually have to pay this money back even if they
:09:28. > :09:34.did not know about it in thd first this? If there is tax due, HMRC has
:09:35. > :09:37.to apply it. That is the wax the tax system works. If you have access
:09:38. > :09:42.money from your pension pot that breaks tax rules we have thd charge
:09:43. > :09:46.of the tax because you have got tax relief you were not eligibld to
:09:47. > :09:50.receive. You will be charged. What is there to protect the consumer and
:09:51. > :09:56.the pretence `` pension holder? I have seen many cases where there are
:09:57. > :09:59.really tragic circumstances where people have been misled and lost
:10:00. > :10:03.their retirement savings and I feel for the people involved. Sole are
:10:04. > :10:08.real innocent victims in thhs situation. But from a tax point of
:10:09. > :10:12.view, we have to apply the rule equally and fairly and if you have
:10:13. > :10:15.chosen to take your pension out of the safety of retirement pension
:10:16. > :10:22.pots, tax will apply. A lesson the victims are le`rning
:10:23. > :10:29.the hard way. And never leaves your mind. Every single day you think
:10:30. > :10:34.about it. It is very bad. You know, you are just a able to relax.
:10:35. > :10:42.Operation Scorpion is helping to raise awareness but as the dvidence
:10:43. > :10:53.shows, new victims are still getting stung.
:10:54. > :11:03.If you aren't, head over to our website. `` if you are worrhed, head
:11:04. > :11:07.over to our website for mord pension advice. Or you can drop me `n
:11:08. > :11:12.e`mail. It would be good to hear from you.
:11:13. > :11:18.Coming up next, we are on the road with the pension haves and have
:11:19. > :11:28.nots as we investigate the potential pensions time bomb.
:11:29. > :11:31.Previous generations retired at 60, got on with the gardening and were
:11:32. > :11:44.But with life expectancy continuing to rise, even if we retire later,
:11:45. > :11:47.These days, most of Britain?s workers don?t have a pension sorted,
:11:48. > :11:49.which could leave us relying entirely on the state, or lhke our
:11:50. > :11:59.65`year`old bus and its 70`xear`old driver, Mervyn, still working.
:12:00. > :12:07.I enjoy it. It is a nice job, you meet nice people. I did invdst into
:12:08. > :12:11.a pension, but it went down the pan. Where better to meet than
:12:12. > :12:14.the Pensioners' Pub? Half of our passengers
:12:15. > :12:17.on our 1949 Bedford are rethred The other half are pension
:12:18. > :12:20.refuseniks ` a handful of Britain?s 13 million company employees who
:12:21. > :12:25.don?t have a private pension. The Government?s rolling out
:12:26. > :12:29.a scheme to try to put that right. Hilda?s celebrating her
:12:30. > :13:41.100th birthday today. These days you?re 44 times lore
:13:42. > :13:45.likely to do the same than 60 years ago, which has prompted the
:13:46. > :13:47.Government to make the most sweeping My pension is ?640. Between them,
:13:48. > :17:27.that?s an income Recently, ?17,000 per person was
:17:28. > :17:37.quoted as the amount needed When you?re young you don?t think
:17:38. > :17:49.about 40 years hence, do yot? It sort of creeps up on you and then
:17:50. > :17:56.you get to 45`50 and you thhnk? ah. We don?t take life too seriously
:17:57. > :17:59.because, I think if we did, Joan?s 93 and has been retired
:18:00. > :18:18.for 30 years. She thinks there?s been a ctltural
:18:19. > :18:20.shift towards spending now rather I don?t think people know how to
:18:21. > :18:25.save ? they?ve never had to make As the Pensions Special rolls down
:18:26. > :18:31.the promenade, time for somd words of warning for those of us who might
:18:32. > :18:38.still have our heads in the sand. The majority
:18:39. > :18:39.of workers don?t have pension savings, so anyone on that side
:18:40. > :18:43.of the bus, but the main message is if you don?t save for your later
:18:44. > :19:05.life what are you going to live on? So, it?s all about being prdpared,
:19:06. > :19:07.or is it? I was planning to start sorting
:19:08. > :19:10.out my pension age 40. Sooner the better ` that?s what I?ve
:19:11. > :19:13.taken away from today. I think we?re just like livd
:19:14. > :19:16.for today because you never know One thing?s for certain, though
:19:17. > :19:25.when it comes to keeping our heads above water when we retire, we?re
:19:26. > :19:28.all going to have to plan ahead So, what if,
:19:29. > :19:40.like some of Jon?s fellow passengers, you haven?t sorted out
:19:41. > :19:42.your pension and you?re worried Mary Rhodes set up a one`stop
:19:43. > :19:48.pensions shop here in Stoke on Trent Who wouldn?t want their savhngs
:19:49. > :20:01.secured for a rosy retirement? But with bills to pay,
:20:02. > :20:04.families to raise and jobs to hold Like it or not, we?re all hdading
:20:05. > :20:15.in the same direction and there are worrying signs ahead,
:20:16. > :20:34.particularly for young women. Women live longer, deeper and less.
:20:35. > :20:39.They might take time out of the workplace to raise a family. Women
:20:40. > :20:41.find it more off`putting and don't engage in pensions as much `s men
:20:42. > :20:42.do. One in five women retiring this year
:20:43. > :20:45.will get no more than the annual There?s no getting around it `
:20:46. > :20:53.men are ahead in the queue for a comfortable retirement. To shed some
:20:54. > :20:56.light on the problem, we surveyed over 2,000 18 to 60`year`olds
:20:57. > :20:59.and found only half of them were When we asked why,
:21:00. > :21:07.affordability was the top answer. It?s not because they?re running
:21:08. > :21:10.around spending everything they It?s because they?ve got jobs where
:21:11. > :21:14.they can?t join a pension scheme at the moment, or they?re maybd caring
:21:15. > :21:20.for somebody or they?re out of work. I mean there are good reasons
:21:21. > :21:26.why women aren?t able to save. Money expert Sarah Pennells is going
:21:27. > :21:29.to help us find some real lhfe But pensions can be a bit
:21:30. > :21:36.of a conversation killer, so we ve invited some friends from Stoke on
:21:37. > :21:39.Trent College to add a bit of colour So we?re ready to go and for you
:21:40. > :21:45.to impart your pearls of wisdom Who should I be looking out for
:21:46. > :21:48.this pension make`over we?vd got? Well, when it comes to penshons
:21:49. > :21:51.the earlier you start saving the better it is because yot?ve got
:21:52. > :21:55.more time for your money to build up and you have to save less every
:21:56. > :21:57.month, so I guess women So, it pays to put your back
:21:58. > :22:03.into saving early. Research suggests people?s hdea
:22:04. > :22:05.of a perfect pension is arotnd To get that, you?d have to start
:22:06. > :22:13.shoveling in a ?1,000 a month It?s time to drum up some btsiness
:22:14. > :22:29.and Sarah?s going to listen in. Have you thought much about your
:22:30. > :22:39.pension when you?re going to retire? Some people, unfortunately,
:22:40. > :22:43.run a mile as soon as you mention the word 'pension'
:22:44. > :22:45.and you can never catch thel. So,
:22:46. > :22:48.you think it?s a bit far ahdad yet? This is the crucial moment `
:22:49. > :22:50.she?s mentioning the free pension information
:22:51. > :22:52.and make`over, so let?s see if she wants to take us up on it or whether
:22:53. > :22:57.she?d rather run for the hills. Would you be up for it,
:22:58. > :22:59.about 10 minutes or so? This is where it gets a bit risky
:23:00. > :23:10.when you?re guessing somebody?s age. This lady coming now, she looks a
:23:11. > :23:17.bit harassed, but I?ll give it a go. I wonder whether Mary will have any
:23:18. > :23:22.more luck now with somebody else. Excuse me,
:23:23. > :23:24.really sorry to bother you. We?re from the BBC, we?re doing
:23:25. > :23:27.a piece about women and mondy and particularly about pensions, which
:23:28. > :23:35.isn?t particularly sexy, I know Is it something you?ve
:23:36. > :23:37.thought about? Well, I know retirement seels
:23:38. > :23:51.a long way off at your age ` Have you ever thought
:23:52. > :23:55.about having a pension? Right, I think you could be
:23:56. > :24:04.a really good person to havd. With our three volunteers shtting
:24:05. > :24:07.comfortably, it?s time to t`lk shop. When I was working I knew that I
:24:08. > :24:13.had one then, but then I?ve had But I?ve never thought about it
:24:14. > :24:18.whether it?s carried There are lots of different
:24:19. > :24:25.issues around the table. 40`year`old Cathy?s had to put
:24:26. > :24:27.work and her company pension on It?s a tough one, but Sarah?s
:24:28. > :24:33.homed in on the pension pot Cathy There is a free to use Government
:24:34. > :24:39.scheme ` it?s called the Pension Tracing Service and that?s
:24:40. > :24:51.a really good starting point. That?s normally enough,
:24:52. > :24:53.if you know when you worked there, you need your National Insurance
:24:54. > :24:57.number things like that. It?s a start
:24:58. > :24:59.and Sarah says there?s still time It?s really hard to make
:25:00. > :25:05.the money stretch, never mind saving, but just think
:25:06. > :25:09.you could be retired for 20 years or more and just try and think,
:25:10. > :25:12.is there anything I can try and save Can I just put aside some money just
:25:13. > :25:18.every week or any month Yeah, sort of, I never thought about
:25:19. > :25:32.it until you pulled us up today A recent survey found
:25:33. > :25:34.similar answers. When asked three`quarters
:25:35. > :25:36.of women didn?t know how much they?d In today?s money, in rough terms,
:25:37. > :25:42.if you get the full state pdnsion But it?s a sobering sum,
:25:43. > :25:51.particularly for 30`year`old Claire. The mum`of`two hasn?t got
:25:52. > :25:54.a private pension and she?s out of I wont be having my nails done then,
:25:55. > :26:04.will I?! Well, I?ve got two children as well,
:26:05. > :26:11.so, obviously, when I am employed, it would be definitely something
:26:12. > :26:13.I?d look into, definitely. Now, would it be something xou would
:26:14. > :26:15.have looked into Claire?s sister Kirsty is
:26:16. > :26:22.in a better position. At 28,
:26:23. > :26:24.she?s already paying into a work I work for the council so it just
:26:25. > :26:36.automatically comes out my wage That?s one of the great things
:26:37. > :26:49.about it being done for you ` if No, I hadn?t really thought
:26:50. > :26:56.about it until now, really. It sounds like we?ve
:26:57. > :26:58.really stirred things up. All three admit they find pdnsions
:26:59. > :27:01.confusing, but Sarah?s summdd things If you return to work after a break,
:27:02. > :27:16.don?t forget about your rethrement. Work out what you want to rdtire
:27:17. > :27:20.on and keep tabs on your pension pot That leaves just one last qtestion `
:27:21. > :27:27.have we converted them? So, how are you all thinking
:27:28. > :27:30.about the whole pension thing now compared with when I first chased
:27:31. > :27:35.you down the street? Obviously,
:27:36. > :27:37.it?ll be a bit higher on my agenda And then I need to look
:27:38. > :27:46.at the sums and not just file it away so I can find out what I?m
:27:47. > :27:49.getting because that ?20 isn?t going You need to make sure you?rd saving,
:27:50. > :27:55.but again I didn?t think of it Some good advice and you?ve got
:27:56. > :28:03.some lovely shiny nails, as well! So, that was Inside Out for the
:28:04. > :28:11.West Midlands for this week. Remember, if you?ve got any pension
:28:12. > :28:39.worries head to our website: Week, the team go to look at the
:28:40. > :28:59.rich film and TV heritage in the Midlands.
:29:00. > :29:01.Hello, I'm Ellie Crisell with your 90 second update.
:29:02. > :29:05.There's no return if you decide to leave the UK.