Published On: Wed, Sep 22nd, 2021

State pension: Outrage after DWP errors causes underpaid amounts | Personal Finance | Finance

“Civil service heads should roll for this latest mess.”

According to pension experts, while mistakes are often “inevitable”, the Government needs to act now in order to prevent similar state pension underpayment issues arising in the future.

Andrew Megson, the Executive Chairman of My Pension Expert, outlined the situation the DWP and wider Government has placed itself in.

Mr Megson said: “The Government has allowed a combination of complicated pension legislation, tax, government processes, underinvestment and legacy processes to fester for decades. And under these circumstances, major mistakes are inevitable.

“This has to be a wake up call for the Government, as well as the entire pension sector. Both parties have been complicit in allowing layer upon layer of regulation to isolate consumers from their pension, which we all know has led to a widening pension engagement gap.

“Recent research from My Pension Expert found that 46 percent of UK pension holders had not checked on their retirement finances within the previous 12 months.

“As such, pensioners are ill-equipped to understand the complex systems and, more importantly, where mistakes have been made, and we see major mistakes going unnoticed before it’s too late.

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