The Week Unzipped: Failings cost Scottish Equitable £60m payout

SCOTTISH Equitable is to pay out £60 million to thousands of its pension customers following an investigation by the Financial Services Authority.

The investigation found a series of failings in the company's procedures. These included incorrect pensions calculations, not issuing thousands of policyholder documents and failing to trace policyholders who had moved home.

The pensions provider, which now trades as Aegon, blamed the failings on administration problems. The FSA also fined the company 2.8 million for the difficulties it caused customers.

Pension pot review

THE Treasury has begun a consultation on the possibility of granting people early access to their pension pots. Currently people can only dip into their pensions at 55, the minimum retirement age.

The consultation paper outlines four proposals for early access. The proposals explore the options of allowing people to borrow from their pension fund or permanently withdraw a tax-free lump sum. The paper also suggests a flexible savings product that could link liquid savings, such as ISAs and pensions together into a single account. During the consultation period the government will seek advice from pensions experts and other interested parties.

Warning on bogus sites

SCOTS must beware of phoney websites as the bad weather hits online shopping, warns the Scottish Crime and Drug Enforcement Agency.

Some major supermarkets and online shops stopped taking orders for delivery in Scotland after last week's severe weather caused travel chaos.

With retailers tackling a backlog of orders caused by the snow, some shoppers may be tempted to buy from less reputable websites.

The SCDEA fears shoppers may panic buy from bogus sites as they seek alternative ways to get their goods delivered in time.

The Agency reminds internet users, including those surfing on smartphones, to ensure they have up-to-date anti-virus software.

Scots prudence declines

THE Scottish habit of prudence is dying fast, according to NS&I's Savings Survey. On average, Scots squirreled away just 85.93 (6.56 per cent of their income) every month in the third quarter of 2010, compared with a year ago, when the typical Scot saved 92.28 per month.

This figure represents the lowest recorded level for autumn since the survey began and is down from the previous quarter, summer 2010, when the average amount saved per month was 93.85.

This can be partly explained by a fall in income compared with 12 months ago. Average monthly take-home income has fallen from 1,424.81 in autumn 2009 to 1,309.51 this quarter.