We're calling on the pensions minister, Ros Altmann, to make sure that pensioners are able to take advantage of new freedoms to access their pension savings.
Major pension provider Friends Life has told customers who asked to withdraw a chunk of their cash that it cannot offer them this option. Customers can choose to withdraw the full amount, incurring a substantial tax bill, buy an annuity, or move to another provider.
Which? executive director, Richard Lloyd, said:
'It's clear the Government now needs to intervene to get pensioners fair treatment and flexible access to their cash without being stung. We're asking the new Pensions Minister to prove her consumer credentials and make this her first priority.
'With providers not stepping up to the plate, a Government-backed drawdown provider should be established sooner rather than later.'
The Government has committed to greater transparency on hidden pension charges in a win for our Hands off my Pension campaign.
We lobbied the Government for a ban on consultancy charges for work place pensions and won.