15/09/2014 Inside Out West Midlands


15/09/2014

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Beware of the pension piratds that could cost you dear.

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USwitch pension fund and yot will receive 20% of the value of your

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investment. `` if you switch your pension front.

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And we?re asking, is it ever too late to start filling

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We give the women of Stoke on Trent a financial MOT.

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Have you got anything planndd? Have you thought about a pension? No

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I?m Andy Akinwolere and this is Inside Out.

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But first tonight, Inside Out's been digging down into

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some of the reasons so many people don?t have a private pension.

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In fact, we commissioned an exclusive survey.

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So, 39% of people who took part in our exclusive survey, they thought

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it was too expensive. 28% thought they were too young. 27% hadn't even

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thought about it. But there is another reason. Many people simply

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do not trust pension companhes. I went undercover to expose one of the

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When we take out a pension, it?s all about securing our future.

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But what happens if I want to cash mine in before I?m 55?

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Well according to some comp`nies age is no barrier ? sounds liberating!

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In fact that's what they call it ? pension liberation.

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When John ` not his real nale ? needed to free up some cash,

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I had been unemployed with hardly any money. I had a family and was

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struggling badly. I was in debt It offered up to 50% off your pension

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fund. That was before the age of 55. My main concern was that firstly

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that it was legal and secondly that you were not going to get t`xed The

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scheme freed up cash but thd joy was short`lived. I cannot tell xou how

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extremely stressful it was. I have made great pains to make sure the

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loans were legal. I thought it was the only way of getting out of my

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financial quagmire at the thme. But it was about to get worse. The great

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thing about pensions is that they are tax deficient. We get t`x relief

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to encourage us to phase `` save, but there are strings attached. If

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you try to cash is in beford you are 55, cutting those strings whll cost

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you a fortune. You have to pay up to 70% of what you get back in tax

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Reputable companies make th`t clear. You actually can't take anything

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from your pension until age 55. It is important people know th`t. But

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John, not his real name, didn't Now he owes the taxman thousands of

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pounds. The ramifications for me and my family are horrendous. It could

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potentially ruin my life. John is not alone. Many of the people here

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have joined the same scheme. Some, as they have to face financhal ruin.

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It is why they formed the stpport group. The people who are sdlling

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these schemes are very crafty and clever, very slick, very convincing.

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They believe them. That is the tragedy. What is the emotional

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impact? It has been devastating There are numerous people who have

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said to me that they sometiles feel the only way out of the misdry is to

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commit suicide because therd is no escape. For those of us stuck in a

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financial hole, freeing up the pension pot might seem like the

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light at the end of the tunnel but the people I have met so far say

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they were kept in the dark `bout tax. That is why I am doing my own

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research. I want to find out if copies are really telling pdople age

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doesn't matter. I can cash ly pension in early, not pay t`x. We

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will start with the initial pension, 37,600. This company will

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take away a certain amount of fees. What you are left with is 24,00 ,

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68%. What it doesn't tell you is that HMRC are going to also take a

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further 55%, minimum, which leaves you about 10% of your pension. That

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is a frightening thought. Otr company `` are companies setting out

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to mislead or just short on facts? I am hoping a few calls will help me

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find out. We have chosen a selection of companies at random and H have

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asked a pensions expert to listen in. I was wondering whether you guys

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could help. I am pretending to be 48. If I did cash in my pension

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there would be taxed to pay. You can't take money out of the pension

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before the age of 55. The fhrst company knows the rules, so, maybe I

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will not be misled. Operation Scorpion might have

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something to do without. It is what the police and pensions regtlators

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are calling their crackdown on page liberation companies. It has

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investigated a sector worth almost half a sector worth almost half a

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billion pounds. Are its tactics working? We have been making a few

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more calls. I want to know what Richard thinks.

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I would like you to listen `nd try and pick out the wrongdoing that is

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going on. We have made it clear I am tnder 55

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that need cash, and fast. The monies generated are 20$ of the

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value of your transfer and `re paid back to you through another

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channel. Effectively, you switch your pension fund and you whll

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receive 20% of the value of your investment. You are shaking your

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head already and licking yotr lips at this! What are we hearing? A

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scam. Whoever that businessds, if money is coming out, it has got to

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come from somewhere. There hs no money magic. That is pension

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liberation, whatever name they put on it.

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He knows I am under 55, so H will have to pay tax, right? No, because

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the money is not coming out of the pension fund. No tax liabilhty? That

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is an out and out con. He is going to lose his pension. That c`se, he

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is good to lose his pension. Wow, that is some message. Will the next

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be just as misleading? We c`n get you 20% cashback with no li`bility

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whatsoever. That is dreadful. Of the nine countries we contacted and

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online `` maenad on the phone, four gave misleading advice. That has

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left me feeling as miserabld as the weather, so what is the pensions

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regulator doing? We have rahsed awareness with the police. The

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important thing is to raise awareness with consumers. I think it

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would be a 0`sum game if we try to sit `` shut down every webshte. If

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anyone comes to you and offdrs you access to your pension before 5 ,

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they are telling you a lie. You need to walk away very fast indedd.

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Yeah, and told the victims `nd their advisers know it. I am playhng them

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something they really need to hear. The money is generated at 20% of the

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value of your fans were on those monies are paid back through another

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channel. How does that make you feel? The same spiel over and over

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again. I am horrified it is still continuing. It is just shocking The

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per consumer does not know the suffering. I couldn't believe what I

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was listening to today. It was a complete codswallop. If people are

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still being misled, why are the victims paying? I am hoping Ruth

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Owen can answer that question. She is the director`general of personal

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tax and Revenue and Customs. There are people being stung left, right

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and centre. Do people actually have to pay this money back even if they

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did not know about it in thd first this? If there is tax due, HMRC has

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to apply it. That is the wax the tax system works. If you have access

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money from your pension pot that breaks tax rules we have thd charge

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of the tax because you have got tax relief you were not eligibld to

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receive. You will be charged. What is there to protect the consumer and

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the pretence `` pension holder? I have seen many cases where there are

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really tragic circumstances where people have been misled and lost

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their retirement savings and I feel for the people involved. Sole are

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real innocent victims in thhs situation. But from a tax point of

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view, we have to apply the rule equally and fairly and if you have

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chosen to take your pension out of the safety of retirement pension

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pots, tax will apply. A lesson the victims are le`rning

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the hard way. And never leaves your mind. Every single day you think

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about it. It is very bad. You know, you are just a able to relax.

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Operation Scorpion is helping to raise awareness but as the dvidence

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shows, new victims are still getting stung.

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If you aren't, head over to our website. `` if you are worrhed, head

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over to our website for mord pension advice. Or you can drop me `n

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e`mail. It would be good to hear from you.

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Coming up next, we are on the road with the pension haves and have

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nots as we investigate the potential pensions time bomb.

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Previous generations retired at 60, got on with the gardening and were

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But with life expectancy continuing to rise, even if we retire later,

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These days, most of Britain?s workers don?t have a pension sorted,

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which could leave us relying entirely on the state, or lhke our

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65`year`old bus and its 70`xear`old driver, Mervyn, still working.

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I enjoy it. It is a nice job, you meet nice people. I did invdst into

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a pension, but it went down the pan. Where better to meet than

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the Pensioners' Pub? Half of our passengers

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on our 1949 Bedford are rethred The other half are pension

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refuseniks ` a handful of Britain?s 13 million company employees who

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don?t have a private pension. The Government?s rolling out

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a scheme to try to put that right. Hilda?s celebrating her

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100th birthday today. These days you?re 44 times lore

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likely to do the same than 60 years ago, which has prompted the

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Government to make the most sweeping My pension is ?640. Between them,

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that?s an income Recently, ?17,000 per person was

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quoted as the amount needed When you?re young you don?t think

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about 40 years hence, do yot? It sort of creeps up on you and then

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you get to 45`50 and you thhnk? ah. We don?t take life too seriously

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because, I think if we did, Joan?s 93 and has been retired

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for 30 years. She thinks there?s been a ctltural

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shift towards spending now rather I don?t think people know how to

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save ? they?ve never had to make As the Pensions Special rolls down

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the promenade, time for somd words of warning for those of us who might

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still have our heads in the sand. The majority

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of workers don?t have pension savings, so anyone on that side

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of the bus, but the main message is if you don?t save for your later

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life what are you going to live on? So, it?s all about being prdpared,

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or is it? I was planning to start sorting

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out my pension age 40. Sooner the better ` that?s what I?ve

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taken away from today. I think we?re just like livd

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for today because you never know One thing?s for certain, though

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when it comes to keeping our heads above water when we retire, we?re

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all going to have to plan ahead So, what if,

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like some of Jon?s fellow passengers, you haven?t sorted out

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your pension and you?re worried Mary Rhodes set up a one`stop

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pensions shop here in Stoke on Trent Who wouldn?t want their savhngs

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secured for a rosy retirement? But with bills to pay,

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families to raise and jobs to hold Like it or not, we?re all hdading

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in the same direction and there are worrying signs ahead,

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particularly for young women. Women live longer, deeper and less.

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They might take time out of the workplace to raise a family. Women

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find it more off`putting and don't engage in pensions as much `s men

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do. One in five women retiring this year

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will get no more than the annual There?s no getting around it `

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men are ahead in the queue for a comfortable retirement. To shed some

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light on the problem, we surveyed over 2,000 18 to 60`year`olds

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and found only half of them were When we asked why,

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affordability was the top answer. It?s not because they?re running

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around spending everything they It?s because they?ve got jobs where

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they can?t join a pension scheme at the moment, or they?re maybd caring

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for somebody or they?re out of work. I mean there are good reasons

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why women aren?t able to save. Money expert Sarah Pennells is going

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to help us find some real lhfe But pensions can be a bit

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of a conversation killer, so we ve invited some friends from Stoke on

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Trent College to add a bit of colour So we?re ready to go and for you

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to impart your pearls of wisdom Who should I be looking out for

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this pension make`over we?vd got? Well, when it comes to penshons

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the earlier you start saving the better it is because yot?ve got

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more time for your money to build up and you have to save less every

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month, so I guess women So, it pays to put your back

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into saving early. Research suggests people?s hdea

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of a perfect pension is arotnd To get that, you?d have to start

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shoveling in a ?1,000 a month It?s time to drum up some btsiness

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and Sarah?s going to listen in. Have you thought much about your

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pension when you?re going to retire? Some people, unfortunately,

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run a mile as soon as you mention the word 'pension'

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and you can never catch thel. So,

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you think it?s a bit far ahdad yet? This is the crucial moment `

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she?s mentioning the free pension information

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and make`over, so let?s see if she wants to take us up on it or whether

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she?d rather run for the hills. Would you be up for it,

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about 10 minutes or so? This is where it gets a bit risky

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when you?re guessing somebody?s age. This lady coming now, she looks a

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bit harassed, but I?ll give it a go. I wonder whether Mary will have any

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more luck now with somebody else. Excuse me,

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really sorry to bother you. We?re from the BBC, we?re doing

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a piece about women and mondy and particularly about pensions, which

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isn?t particularly sexy, I know Is it something you?ve

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thought about? Well, I know retirement seels

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a long way off at your age ` Have you ever thought

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about having a pension? Right, I think you could be

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a really good person to havd. With our three volunteers shtting

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comfortably, it?s time to t`lk shop. When I was working I knew that I

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had one then, but then I?ve had But I?ve never thought about it

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whether it?s carried There are lots of different

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issues around the table. 40`year`old Cathy?s had to put

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work and her company pension on It?s a tough one, but Sarah?s

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homed in on the pension pot Cathy There is a free to use Government

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scheme ` it?s called the Pension Tracing Service and that?s

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a really good starting point. That?s normally enough,

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if you know when you worked there, you need your National Insurance

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number things like that. It?s a start

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and Sarah says there?s still time It?s really hard to make

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the money stretch, never mind saving, but just think

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you could be retired for 20 years or more and just try and think,

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is there anything I can try and save Can I just put aside some money just

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every week or any month Yeah, sort of, I never thought about

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it until you pulled us up today A recent survey found

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similar answers. When asked three`quarters

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of women didn?t know how much they?d In today?s money, in rough terms,

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if you get the full state pdnsion But it?s a sobering sum,

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particularly for 30`year`old Claire. The mum`of`two hasn?t got

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a private pension and she?s out of I wont be having my nails done then,

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will I?! Well, I?ve got two children as well,

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so, obviously, when I am employed, it would be definitely something

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I?d look into, definitely. Now, would it be something xou would

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have looked into Claire?s sister Kirsty is

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in a better position. At 28,

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she?s already paying into a work I work for the council so it just

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automatically comes out my wage That?s one of the great things

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about it being done for you ` if No, I hadn?t really thought

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about it until now, really. It sounds like we?ve

:26:50.:26:56.

really stirred things up. All three admit they find pdnsions

:26:57.:26:58.

confusing, but Sarah?s summdd things If you return to work after a break,

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don?t forget about your rethrement. Work out what you want to rdtire

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on and keep tabs on your pension pot That leaves just one last qtestion `

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have we converted them? So, how are you all thinking

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about the whole pension thing now compared with when I first chased

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you down the street? Obviously,

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it?ll be a bit higher on my agenda And then I need to look

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at the sums and not just file it away so I can find out what I?m

:27:38.:27:46.

getting because that ?20 isn?t going You need to make sure you?rd saving,

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but again I didn?t think of it Some good advice and you?ve got

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some lovely shiny nails, as well! So, that was Inside Out for the

:27:56.:28:03.

West Midlands for this week. Remember, if you?ve got any pension

:28:04.:28:11.

worries head to our website: Week, the team go to look at the

:28:12.:28:39.

rich film and TV heritage in the Midlands.

:28:40.:28:59.

Hello, I'm Ellie Crisell with your 90 second update.

:29:00.:29:01.

There's no return if you decide to leave the UK.

:29:02.:29:05.

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