15 February 2018

British Steel Pension Scheme scandal: Don't deny workers the chance to reshape their retirement plans

2 min read

Steve Webb
Royal London



Commenting on the British Steel Pension Scheme "major mis-selling scandal", announced yesterday by the Work and Pensions Select Committee, Steve Webb Director of Policy at Royal London comments:

"The British Steel Pension Scheme and the employer failed to make sure that all workers had access to high quality impartial advice about their pensions and failed to make sure they had enough time to make calm, well-informed choices about whether or not to transfer.

But the right response to what went wrong is not to clamp down on people’s freedoms to choose what to do with their pensions. Many hundreds of British Steel workers did take good advice and chose either to transfer or not on the basis of that advice, used reputable pension providers where they did transfer and are happy with the outcome.

It is important not to throw the baby out with the bath water in this case. The right lesson is to clamp down on those who seek to exploit people and scam them out of their pension savings, not to deny workers the chance to reshape their retirement plans if they wish to do so on the basis of impartial expert advice."

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About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.