The pension reforms which came into effect in April gave people aged 55 and over greater freedom to choose how and when to access their defined contribution pensions.
Where previously most people were required to purchase an annuity, in the UK they now have access to a range of potential options regardless of circumstances. These include drawing down income from a fund that remains invested or taking a pension as cash.
Data deficiency
The Committee was very critical about the lack of data on the impact of the pension reforms so far.
“The Government’s reticence in publishing statistics on the effects of its pension freedom policy, a full six months after the reforms, is unacceptable,” the report said.
“We recommend that the Government initiate a rolling research programme to track the longer-term consequences of pension freedom decisions.”
It was also worried about a rise in criminal activity surround the pension freedoms and increased risks of people being conned out of their life savings.
“We recommend the Government urgently redouble its publicity efforts around pension scams,” the Committee said.
