Evening Standard/London

Ed Miliband has attempted to clarify Labour’s position on the coalition’s radical pension reforms, insisting he backs looser rules.
But Miliband said the party wanted to “scrutinise the detail” before committing to support the changes in Parliament.
The comments came after the Opposition was criticised for a muddled response to George Osborne’s Budget proposals, which would stop pensioners being forced to buy annuities and allow them to cash in funds.
Miliband did not address the plans directly in the House, and senior figures such as former frontbencher Tom Watson have raised concerns about people blowing their retirement pots.
“We’re in favour of greater flexibility when it comes to pensions,” Miliband said in an interview.
“There are certain questions that now need to be answered by this government about the fairness of these proposals.
“Is it going to help all lower and middle income tax payers as well as those at the top of society?
“Is it going to ensure that those who want to buy an annuity - which is part of the current system - can do so, particularly if they are on low or modest income. And is the Government going to ensure that there is the right advice available to people?
“We’re certainly not going to reject these proposals out of hand. That would be the wrong thing to do.
“These are complex proposals. We need to scrutinise the detail and we need to have some clear answers from the Government on some of those questions.”
Treasury minister Sajid Javid said: “As part of our long-term economic plan to build a more secure and resilient economy, we are making it easier for people who work hard and do the right thing to save and to have a more flexible pension.
“But, after 48 hours of having nothing to say at all, Ed Miliband has finally confirmed that Labour do not trust people who work hard to look after their pensions.
 “The people who benefit most from this measure are low and middle earners who have saved throughout their lives, and yet Labour don’t think they deserve the right to control their own money.
“It’s the same old Labour, and they have no plan to secure Britain’s future.”
A generation of pensioners could become “very poor and very old” after being lured into bad investments following Chancellor George Osborne’s reforms, experts said.
They warned of future financial scandals with people being mis-sold investments that offer tempting incomes at first but mean their nest eggs are used up before they die.
Analysts predicted very few would blow their entire pension pots on sports cars or yachts instead of being forced to buy annuities, but many would end up with financial products that ran out during their lifetimes.
“Lots of advisers will pop up offering fantastic-looking deals that pay 10% returns or more,” said independent pensions consultant John Ralfe.
“They might offer, say, £5,000 a year for a £100,000 investment over 20 years, but by the time the pensioner is 85 it is running out. There will also be boiler room scams that offer investments in non-existent projects. There could be a lot of very poor and very old people who actually tried to do the right thing but found the decisions are extremely complex.”
Tom McPhail, a pension expert at Hargreaves Lansdown, predicted that new conservatories would be a bigger draw than Lamborghinis for people dipping into their savings.
He said:“I could see people using some of their pension funds to improve their homes, for example buying conservatories, double glazing or a new heating system.”
But there were also warnings that house prices could be driven up faster if pensioners move into the buy-to-let market. Giles Beswick, a director at Select Property, said: “The buy-to-lets that we offer could comfortably support people’s retirement plans as it provides a secure income and they would also benefit from any capital appreciation when they came to sell the property.”
He said Osborne had taken “the shackles off” for people with the confidence to invest.
Few experts agreed with pensions minister Steve Webb who said he was “relaxed” abut people blowing their funds on a Lamborghini sports car.
Howard Archer of IHS Global Insight said: “I doubt there will be a major demand for really big- ticket items. But it is very possible better-off pensioners may be more inclined to use some of their suddenly available lump sum to splash out on cruises and holidays early on in their retirement when they are in good health, to reward themselves for a lifetime’s hard work.”