15/09/2014 Inside Out West

Do you have a pension and if not, why not?

Tonight, we look at the growing problem half

of us are facing in retiremdnt.

We go undercover to expose the largest scam

in the pensions industry, which is leaving victims penniless.

There are numerous people who have said to me that they sometiles

feel that they the only way out of this misery is to commit suhcide.

Why wouldn't you get a penshon?

Do you feel safe relying on the state to provide in your old age?

And as BBC Bristol turns 80, we go underground with John Craven to

discover the BBC's wartime secrets.

I'm Alastair McKee, and this is Inside Out West.

First tonight, a ?500 million pension scam.

Andy Akinwolere goes undercover to expose one of the biggest cons

targeting private pension holders.

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

our nest egg for retirement.

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

According to some companies, age is no barrier ` sounds liberathng.

In fact, that is what they call it, pension liberation.

When Jon ` not his real namd ` needed to free up some cash,

he wasn't short of offers, one seemed particularly appdaling.

It was a very attractive scheme

It was a way of releasing some money from your pension fund that you had

amassed over the years and it looked straightforward.

It was a case of you retain your pension fund in the long`term,

that you can use in your retirement, but you can enjoy some

of the cash if you need it hn the earlier days.

The scheme would have freed up ?26,000 in cash,

but after he transferred his pension, the regulator and then the

High Court ruled it was illdgal

And what that effectively mdant was that the pension was null and void.

And whatever assets have now been seized by a trustee.

That means for me now my pension pot is now gone.

But it was about to get worse.

The great thing about pensions is that they are tax efficient,

in other words we get tax rdlief on them to encourage us to save

but there are strings attached.

And if you try to cash yours in before you are 55, cutting those

strings will cost you a fortune

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

PHONE RINGS

Reputable companies make th`t clear.

We cannot take anything from your pension until aged 55

It is important people know that.

But Jon ` not his real name ` didn't.

What it means for me person`lly is potential bankruptcy.

And loss of my personal house.

But Jon's not alone.

Many of the people here had joined the same scheme. Some, as they have

told me, face financial ruin.

It's why they formed this support group.

The people who were selling these schemes were very, very crafty,

very clever, very slick, very convincing, and they believdd them.

That was the tragedy.

What's the emotional impact been?

It's been devastating.

There are numerous people who have said to me that they sometiles

feel that the only way out of this misery is to commit suicide.

Because there is no escape.

For those of us stuck in a financial hole, freeing up our pension pot

might seem like the light at the end of the tunnel, btt the

people I have met so far sax they were kept in the dark about tax

That's why I'm doing my own research.

I want to find out if companies are really telling

people age doesn't matter.

I can cash my pension in early and not pay tax.

So, we will start with the initial pension.

?37,600.

Now, this company is going to take away a certain amount of feds.

What you are left with is ?25,8 2, which is 68% of your pension.

But what it doesn't tell yot is that HMRC are going to also take

a further 55% minimum, which leaves you with 10% left of your pdnsion.

That is a frightening thought, but are companies setting ott to

mislead, or just be short on facts?

I'm hoping a few calls will help me to find out.

We have chosen a selection of companies at random and H have

asked pensions expert Richard Jacobs to listen in.

I'm wondering whether you could help?

I'm pretending to be 48, so if I did cash in my penshon,

there would be tax to pay.

ON THE PHONE: You can't takd money out of a pension before the age

of 55.

So the first company knows the rules.

OK, you never know maybe I won't be misled.

Everybody, we are the Old Bhll, as you can tell.

Operation Scorpion might have something to do with that.

It is what the police and pensions regulators are calling

their crackdown on pension liberation companies.

Since being set up, it's investigated

a sector worth almost ?500 lillion.

But are its tactics working?

We have been making a few more calls.

I want to know what Richard thinks of them.

I'd just like you to listen to it and try and pick out

the wrongdoings going on.

ON PHONE: Hello, there.

We have made it clear I'm under 55, but need cash and fast.

ON PHONE: The monies generated at 20% of the value of your tr`nsfer

and those monies are paid b`ck to you through another channel.

Effectively, if you switch xour pension fund, you will recehve

20% of the value of your investment.

Already you are shaking your head.

Already you are grinning.

You are licking your lips at this!

What are we hearing there?

A scam.

That bit, whoever that business is, you know, if money is coming out,

it has to come from somewhere.

There is no money magicked from anywhere.

But that is pension liberathon, whatever name they put on it.

Right.

But he knows I'm under 55 so I will have to pay tax, right?

ON PHONE: No, because the money is not coming out of the pension fund.

No tax liabilities taking your pension out early?

Yes, that is out`and`out con.

He is going to lose his pension

Really? That case, she going to lose his pension.

Wow, that is some message.

Will the next be just as misleading?

ON PHONE: We can give you a 20% cashback, there is no tax

liabilities whatsoever.

That is dreadful.

In fact, of the nine companhes we contacted online, and on thd phone,

four of them gave misleading advice.

That's left me feeling as mhserable as the weather, so what is the

pensions regulator doing about it?

We have raised awareness with the police, with providers.

The important thing is to raise awareness with consumers

and I think it would be a zdro sum gain if we or any other agency tried

to shut down every website.

The message we need to get out to consumers is if anyone offers you

access to your pension schele before 55, they are telling you a lie.

You need to walk away very fast indeed.

Yes, and don't the victims and their advisors know it!

I'm playing something they need to hear.

PHONE RECORDING: The monies generated at 20% of the valte of

your transfer and those monhes are paid back to you

through another channel.

How does that make you feel?

It's the same spiel over and over again.

I'm horrified that it is still continuing.

This is shocking.

And the poor consumer out there doesn't know ` is suffering `

it is just like, I couldn't believe what I listened to there.

It was complete codswallop!

If people are still being mhsled, why are the victims paying?

I'm hoping Ruth Owen can answer that question.

She is Revenue Customs Director`General of Personal Tax.

There are some innocent people being stung left, right and centrd.

Are you trying to tell me that people have to pay this mondy

back if they didn't know about it in the first place?

So, if there was a tax due, HMRC has to apply it, that is the wax the tax

system work, so if you have accessed money from your pension pot that

breaks the tax rules, then we do have to charge you the tax because

you got a tax relief you weren't eligible to receive,

so you will be charged.

What is there to protect thd consumer? What is there to protect

the pension holder?

I recognise that.

I have seen many cases myself where ` really tragic circumstancds where

people have been misled and have lost

their entire retirement savhngs

I do feel for the people who are involved

Some are real innocent victhms in these situations.

But from a tax point of view, we have to apply the rule epually

and fairly and if you have chosen to taken your pension out

of the safety of retirement pension pot, tax will apply.

A lesson the victims are learning the hard way.

Run as far away as you can from them, in the opposite direction

Operation Scorpion is helping to raise awareness,

but as our evidence shows...

PHONE RECORDING: There is no tax liabilities whatsoever.

But new victims are still getting stung.

Almost half of us living in the South of England don't have

a private pension.

According to a ComRes survex commissioned for Inside Out,

many say they can't afford ht or are too young to think about it.

So should we be worried?

Jon Cuthillon has been findhng out.

HARMONICA PLAYS

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

grateful for a free bus pass.

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

we're likely to be retired longer.

These days, most of Britain's workers don't have a pension sorted,

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

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

I enjoy it and I'm a part of the business.

It's a nice job. You meet nhce people.

So, while I can, I'm carrying on. I did invest into a pension, but it

went down the pan.

Today, we're on a trip to the seaside.

And where better to meet th`n the Pensioners Pub.

Half of our passengers on our 1949 Bedford bus are retired.

The other half are pension refuseniks ? a handful of Britain's

13 million company employees who don't have a private pension.

The Government's rolling out a scheme to try to put that right.

All aboard the pension spechal? ALL: Yes!

'Auto enrolment' makes it a legal requirement for companies to

sign up staff to a pension.

But if you earn less than ?00,0 0, you won't qualify.

And anyone self`employed will have to sort themselves out.

Here's a question for you ? who has got a pension

OK. Who hasn't got a pension?

Why not?

Money really ? putting monex aside just isn't feasible at the loment.

I'm Adam Fox, I'm 27, I'm a senior colour technician.

I get paid ?500 a month so absolutely no money, no dxtra

funds there for pensions and things like that.

And Adam's not the only one.

You haven't got a pension ehther? No.

I'm Katie, I'm a carer.

I get ?6.50 an hour.

I'm still doing my studying so it's not beneficial to md to pay

into a pension at the moment.

Hilda, look what just came.

What's that? It's your lettdr from the Queen.

Hilda's celebrating her 100th birthday today.

These days you're 44 times lore likely to do the same than 60 years

ago, which has prompted the Government to make the most sweeping

changes to pensions in generations.

Hello, there.

Time to make room on the bus for Minister of State for Pdnsions,

Steve Webb, the man responshble for the radical reforms.

The first thing we've got to do is get millions of people

into a pension at all.

Particularly starting with xoung people, then we've got to btild

on that level.

So, 8% of your salary for most people won't get you a comfortable

retirement. It's a start, btt we have to build on that.

What about the charges, oncd you get a pension,

you will be nailed by chargds? What will you do about that?

In the past, too many peopld have been ripped off.

These new workplace pensions will be different because we will

cap the charges, so from next April, more than 99 pence in the pound that

you put into a pension will go into pension, not into charges, so they

will be the best valued pensions, particularly because your fhrm is

putting money in as well, one of the best things you can invest hn.

With a captive audience Steve Webb can't resist the opportunitx to

nudge the pension message.

Tell me your pension experidnce are you ever going to have one?

I'm self`employed.

I do weddings and events, things like that. I don't think thd return

you are going to get from a pension will be valid.

Mark Larter's 39. Instead of a pension he's opted for a

buy`to`let.

My property's going to rent out to students in Southampton, a really

high student population there. And it's right in the centre of town, so

it is a wicked location.

It is always going to rent, no matter what.

37`year`old Balvinder Singh has frozen his private pension,

put off by the constantly increasing retirement age.

I don't trust pensions becatse I don't know how much I'm going to

get and when I'm going to gdt that, because they keep increasing every

day. Sometimes, 60, 65, now they say 70 years. I don't know if I will

live that time.

From listening to people I can understand why people may w`nt to do

something in addition to pension but they should consider pension

as one of their options.

For people that think it is too hard, there is

always something, a little something that will make it easier for them,

such as if they work for an employer, it could be the elployer

could contribute into their pension scheme, so ask the question, phone

people like us at the Pensions Advisory Service and we can give

people little hints to make it helpful, but don't just relx on one

source of income in retiremdnt, don't just rely on property.

Things are different on the retired side of the bus,

where some have the sort of gold plated final salary schemes that

anyone who's signing up to ` pension now will probably never get.

I don't see myself as being in any way privileged, I see myself as

having worked in public service for a relatively reasonable sal`ry, but

the attraction of it was always the reasonable pension

at the end of the day.

Pension pretty good really because it's index linked and I know from

year to year I know exactly what it is I'm probably going to get

But not all pensioners are as fortunate.

I'm Lyn, I'm 67, and I survhve on a basic pension of ?72 a week.

I'm Reg, I'm ?78, my state pension is ?640 a month. Plus I havd a

private pension, which is ?050 a month.

Between them that's an incole of roughly ?13,000 a year.

Recently, ?17,000 per household was quoted as the amount needed for a

comfortable retirement.

When you're young you don't think about 40 years hence do you. It sort

of creeps up on you and then you get to 45`50 and you think ah.

We don't take life too seriously because I think if we did, we could

get a big depressed. We could.

Compared to men, three times as many women retire with no privatd pension

savings at all.

I'm Lin Gel, I'm 58 and I rtn a B in Lee on the Solent.

I don't have a pension. I dhdn't think I'd need one.

My husband had quite a few pensions, but unfortunately he died.

Lin does get some of her late husband's Naval pension but not

enough to give up work.

I get just below ?500 a month which is a proportion of what he would've

got. It's tough because I'vd got to work now to get a state pension

until I'm 68. But to be hondst everyone's going to have to work so,

you know.

Joan's 93 and has been retired for 30 years.

She thinks there's been a ctltural shift towards spending now rather

than putting money away for later.

I don't think people know how to save ? they've never had to make

do and mend like we had to.

As the Pensions Special rolls down the promenade, time for somd words

of warning for those of us who might still have our heads in the sand.

The majority of workers don't have pension savings, so anyone on that

side of the bus, you're not alone. However, the main message is

if you don't save for your later life, what are you going to live on?

The state pension, certainlx for those who are relativelx young

now, is changing dramatically and from 2016 onwards, younger

people will know that when they get to retirement, the state pension is

going to be around ?20 a dax.

So, it's all about being prepared, or is it?

I was planning to start sorting out my pension at the age of 40, which

after today, I have realised is far too late.

We are more like living for today. You never know what is going to

happen tomorrow.

My business is going good. Property is going well, so I'm quite happy

with how things are going.

One thing's for certain thotgh, when it comes to keeping our heads

above water when we retire, we're all going to have to plan ahead

Next time I'll bring my swilmers!

If you would like more detahls on our pensions survey,

head to our website ` bbc.co.uk/insideout.

Now, this week, BBC Bristol marks its 80th anniversary,

so we decided to send John Craven behind`the`scenes to uncover some

of Auntie's little`known secrets.

I have recently celebrated 25 years presenting Countryfild.

And these days it's produced right here at BBC Bristol.

My TV reporting career started here on Points West 40`odd years ago

This is Bristol's Magna Carta.

And before Newsround, I presented my first childrdn's TV

programme from Bristol.

Hello and welcome once again to Search.

I really feel as though I have come full circle.

So, it's with great affection on the 80th anniversary of

BBC Bristol that I'm setting off to find out how it all started.

So, how did the BBC come to be based here in Whiteladies Road?

The story goes that in the 0930s, two BBC bigwigs were on

the look`out for suitable premises in Bristol and they spotted this

unoccupied building on the corner and they climbed in to take a look.

And I discovered someone who knows a bit more about it.

My grandfather was asked to pick up John Reith from Temple Meads.

The Director`General of the BBC

The man himself as he was in those days, yes, with thd idea of

driving around Bristol to look for a building for Broadcasting House.

And they came up Whiteladies Road by what was the petrol stathon

in those days and my grandf`ther said we needed petrol and as they

pulled in and stopped, they looked across and Reith apparently said

this looks like a good building

Well, unoccupied?

Unoccupied, they couldn't get access formally,

so they found a window and climbed through and had a look round.

He obviously liked what he saw?

Yes.

Lord Reith, because they took over the building?

It's a lovely building.

This door has not been opendd for many years now.

I can remember when I was working here going through ht.

But I think it's opened for us now.

Let's have a look.

Shall we go in?

Yes.

We are very privileged.

I can remember coming through these doors when I had my intervidw for

Points West, with great trepidation.

And checking in here with the

commissionaires as they used to be based here.

Morning.

The Lord Mayor of Bristol officially opened

the centre on 18th September 19 4.

This is the BBC Home Servicd from the West of England.

There were four radio studios, three for speech and drama.

What's that?

It's gulls, we have disturbdd them.

Better keep closer to the b`nk. They will give us away.

And one big enough to hold an entire orchestra.

The outbreak of war transformed Bristol's role.

With London under heavy bombing the BBC sent its entire entertahnment

department to the comparative safety of Bristol.

Home Service, good morning everybody.

The big names put on their radio shows in parhsh halls

dotted around the area.

The aim was to keep up the nation's spirits

and they called it the Fun Factory.

Bristol beamed out shows such as ITMA ` It's That Man Agahn,

which starred Tommy Handley.

It was renowned for its cheeky catchphrases.

What about this?

And the radio show Bandwaggon with Arthur Askey

and Richard "Stinker" Murdoch.

Am I standing in a hole or are you on horseback?

With the threat of invasion and the ever present danger

of bombing, the BBC set up hts very own fortress in Bristol herd

on the Avon Gorge. It had a control room, and emergency studios.

But is there any trace of it left today?

To find out, I'm going to h`ve to clamber down 316 steps.

The secret BBC studios were hidden deep down inside the abandoned

Clifton Rocks Funicular Railway

This is an honour to be allowed to go through here.

Not normally open, are they?

Off we go.

The tunnel in the cliffs was dug out in the 1890s and, for 40 ye`rs,

the carriages ferried thous`nds of passengers up`and`down the gorge.

One, two, three, four...

Way, way down underground I'm hoping to find Peter Davy, the chahrman

of a group of volunteers restoring sections of the site.

313, 314, 315, 316!

Hello, Peter.

Hello, John.

This is the BBC part.

Come on down.

This is the fortress? Yes.

Thank you for showing me. Nhce of you to come down.

The tunnel is blastproof, the BBC section is also gasproofed.

What room was this?

This is the transmitting room.

Look at the state of it now.

It is so sad.

Just to think back during the war, it would have been buzzing with all

the instrument panels around here and sending

off programmes around the world

80 telephone lines were comhng in here. Wow.

And all the reports from the journalists.

I did hear a story that they were transmitting

one day to the Arabic part of the world and by mistake they put

out a Welsh language progralme.

What's the next one down?

We have got here the studio.

This is where people like Alvar Lidell would have read the news

Stuart Hibberd was down herd. Yes.

If you look at that picture, we are standing on this step outside..

Good old`fashioned BBC microphone.

It is wonderful.

I am told that if London had fallen, if there had been an invasion,

Bristol would have been the last`ditch stand.

This studio would have been where those famous broadcasters sdnt

messages about resistance from.

Sirens go, they get in a trtck in Whiteladies Road and come down here.

They had codes to tap out to say Bristol has fallen,

London has fallen.

They took it very seriously. Yes.

And of course when the war dnded, so did all of this?

Absolutely fascinating.

Thank you very much for showing me. Excellent.

Have your torch back now. Thank you. Thanks for coming

For me, just one problem ` 316 steps to climb up!

Bye`bye. Bye. Thank you.

Well, I made it!

Dave, how are you? Nice to see you.

I remember you from the early ' 0s when I was on Points West, xou were

floor manager.

Yes.

When he was 16, Dave was a technical assist`nt

in the emergency wartime sttdios.

You worked here during the war?

I did. 1944, I think.

We used to be driven down hdre at about 1.00am

because we only did it at nhght

And checked that things were still working.

And that the diesel generator was working. When we ran it we had to

swing it with our hands.

That was quite a job. We had American Dodge car with a roof that

was reinforced. It had a metal plate on it and a curved top

and it was filled with sand.

It was ` they called it an armoured car, we used to drive

down and we used to park outside, which you can't do today.

I know you were just a young lad when you worked down there, but even

so, what was it like having to come up`and`down those steps every day?

We only came in the bottom.

I didn't know there was another entr`nce

Didn't you?

Down at ground level?

Oh yes. That was our privatd entrance.

No`one else could use that. You were very lucky. Oh yes.

Presumably, that has been closed off now, that entrance? Yes.

Which is why I had to come up`and`down the stairs?

Did you really? Yes.

That would take a time to go up`and`down those steps. It does!

This is the BBC Home Servicd... After the war, the BBC resuled the

West of England Home Servicd at Whiteladies Road and over the

years, the site has been extended,

adding television and radio departments and the world

famous Natural History Unit.

As well as all regional output, BBC Bristol produces nearly 500

hours of national television a year, plus 350 hours of original content

for network radio.

Not bad for an 80`year`old!

All this week, John Craven will be following

BBC Bristol's story on Points West.

That's it for this week.

If you would like to keep in touch with what we are up to, you can find

us on Twitter or Facebook, but from me, thanks for watching.

Good night.

Next week, we investigate the threat of anarchist attacks

in Bristol.

I've got a core investigation team of 20`plus officers who are working

on this investigation to trx and find out who is committing these

attacks and bring them to jtstice.

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

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