Pensions Sudden changes disrupt retirement plans

Banned from making transfers or told they must wait to retire, older people tell of fears for their savings.

- Rupert Jones

You've been dutifully paying into your company or private pension for years, maybe even decades, but then -perhaps when you're just about to retire they suddenly change the rules.

As a result, it looks like you may be hundreds or even thousands of pounds a year worse off.

A couple of decades ago, pensions were a wild west, with scandals causing confidence to plummet, whether it was largescale personal pensions mis-selling or workers losing their funds when their employers went bust.

Tougher rules and regulations are now in place, but in recent weeks Guardian Money has heard from several people who are concerned about their retirement savings. Two tell their stories here.

'Boots was a brand I placed my trust in'

Anne Harding is one of more than 20,000 current and former Boots workers who say they could be left out of pocket, in some cases by several thousand pounds a year, due to changes made "overnight" to their pension scheme.

They will now typically be forced to wait an extra five years to get their full pensions. Some may now delay taking their pension, but for many there is no time to amend their financial plans, which means they are forced to accept a reduced payout, say campaigners.

Last November, the health and beauty retailer off-loaded its multibillion-pound final salary workplace pension scheme to insurer Legal & General, which took on its assets and liabilities. In recent years lots of big employers have been doing this to rid themselves of pension "risk" so they can concentrate on running their core business.

The Boots scheme closed to new members in 2010. The Boots Pension Support Group, an action group, reckons there are roughly 23,000 members still to retire and start getting their pension.