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The Independent Network of Estate Agents says it is worried that the so-called pension freedom' created by relaxations in over-55s accessing their pension pots may lead to poorly-advised or amateur pensioner investors losing their money.

In a media statement, the INEA's Trevor Mealham warns that many property gurus' are advising property investors - sometimes people investing in real estate for the first time - and leading them to deals that are questionable.

The worry is exacerbated by the fact that the gurus in question are not subject to the official property redress schemes applying to legitimate estate and letting agents, he says.

Whilst bona fide estate and letting agents run under redress, the property scam artists (often with front people under them) run easy-to-find 'property investor' websites and often do seminars and stands at property expo's says Mealham.

But what will happen when Mr and Mrs Over 55 lose their pension and in their twilight years end up in debt, or even losing their own home he asks.

Mealham claims that a typical scam may be to offer over-valued properties where a guaranteed percentage return is promised for two, three or four years - where the original over-valuation is what makes the promised return possible.

I'm not saying all such investment schemes are scams - but many to those in the industry appear to good to be true he says, adding that the big fear is that what started as pension liberation could become pension liability or, at worst, pension lost.

Comments

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    Giving pensions a choice on where to invest can only be a great idea on paper.

    The real questions are what type of education these pensions need in order to understand residential buy to let investment. I would haphazardly guess that majority of them will not be gullible enough to buy 'questionable' investment deals! I hope not.

    Certainly the Government could have done more to educate those affected by this proposal.

    • 17 April 2015 19:18 PM
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    That's all very well, but what happens when a naive old lady gets drawn into a property or timescare sham and ends up in loads of debt. Or if some older people spend recklessly and end up losing their home As the article states, most investment 'opportunities' sound too good to be true. And as the saying goes, if it sounds too good to be true, it probably is.

    It's an irresponsible and haphazard policy, clearly designed to secure the grey vote. So cynical it hurts. But what more do you expect from Cameron and Osborne

    More to the point, this pension pot reform is going to encourage even more older people to become buy-to-let landlords, which is exactly what the housing industry doesn't need.

    • 17 April 2015 15:13 PM
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    Wow, there are a lot of a bitter bunnies on here today. It's Friday, cheer up.

    Allowing pensioners to cash in on their pension pots - their being the key word - is a brilliant policy. They can do with the money as they please rather than being at the behest of greedy pension firms or the government.

    • 17 April 2015 15:07 PM
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    Another terrible, terrible idea from the Tories. Shameless election bribery, doing their best to butter up the over 55s who are twice as likely to vote. Shameless.

    • 17 April 2015 15:06 PM
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    For once, Ray Evans, we agree. Silly policy. Basically another election bribe from the Tories to shore up the grey vote. Will probably work, but doesn't make it any less desperate.

    • 17 April 2015 10:42 AM
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    Silly legislation. Annuities were indeed poor value but that is what should have been looked into. Pensions were to make SURE one had an income for later life. There will be tears before bedtime over this.

    • 17 April 2015 09:44 AM
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