Desperate retirees' nightmare as they are forced to borrow money and use savings waiting for pension

• ITV Central's Nancy Cole exclusively reports on retirees forced to borrow money and use their savings amid massive delays with their pension payments

Pensioners across the West Midlands who have waited for months on end for their payments have told ITV Central they are struggling with their mental health as they are forced to borrow money and live off savings.

This desperate fate is thought to be affecting around 2,000 people, who worked in the public sector in the Midlands - as a result of payout delays caused by a new IT system at the Pension Fund. 

West Midlands Pension Fund said the delays were due to an computer system upgrade that took place last July. 

But months on and the issue is still affecting thousands of people.

Retirees have reached out to ITV Central to share their devastation at being left without the money they saved throughout their lives.

Amanda Clayton, from Quarry Bank, retired last August from her job as a higher level teaching assistant.

She has yet to see a penny from the pension fund she paid into for more than 20 years.

Amanda is one of many impacted by the delays - as a result of issues from the organisation that manages the pensions of 350,000 people in the West Midlands - from 800 public sector organisations.

She said she has called the Fund’s helpline, which is open for just five hours a day, with a average call waiting time of 45 minutes, but she is unable to access the information she needs. 

She said: “They are not talking to people, they don’t come back to you.

"It has been so stressful it is to access something that is rightfully yours. There have been times that I’ve come off the phone and I have been in tears.”

Debbie Mitchell, a former council worker from Cosford, decided to cash in her pension last year after experiencing health concerns. 

She said before the IT system was changed, she was told it would take around six weeks to get her pension cashed in.

However, she submitted her application after the IT system was changed and has now been forced to use her savings while she waits for her money.

She said: “I’ve always been quite independent, so not having my own money has been quite difficult actually. I don’t like having to borrow off my husband or use credit cards.

"For 31 years I’ve paid into the Fund, I’ve always been quite self-sufficient. I’m now living on no money of my own.” 

ITV Central has heard the heartbreaking stories from several of those affected.

In December 2023, a pensioner told of his wait for money from the Fund that he had paid into during his employment.

Since then, many more have contacted to share their experiences about the nightmare they have faced.

One person said: "Once retired I will have no other form of income and this is resulting in an immense amount of personal stress.”

Another added: “I am upset as the whole idea of me taking my pension early was so that it supplemented my income as I have had to work part time due to ill health.” 

Someone else said: “I have been trying since September to access my pension. I decided to borrow £3000 pounds from my bank to tide me over.

"I know there are some much worse off than me but it’s my money. How long will I have to wait?"

West Midlands Pension Fund has acknowledged what it calls a "drop in service delivery performance"

In a statement it said: “We would like to reassure our members and employers, that we are making progress in recovering our service standards.

"We remain focussed on servicing those members who are seeking and waiting for retirement benefit quotations, payments and beneficiary benefits, prioritising those most in need and reducing aged casework.

"We would like to thank our members and employers for their ongoing patience, support and understanding at this time.”

The West Midlands Mayor Andy Street told ITV Central he has been assured by the WMPF the system is improving.

He said: “I have been pressing them to get it solved as quickly as possible and really clearly getting an answer to those people who are waiting for their estimates, thinking about where they take.

"And the crucial decision in life about whether or not to retire, there's huge questions to be asked about how they got into this situation.

"But do I see evidence that they are trying to respond to it, to be fair, I do."

Birmingham Selly Oak MP, Steve McCabe said he has constituents who are concerned and has urged the Fund to move at pace.He said: "These people have paid into their works pensions, they need that money now in the cost of living crisis.

"They certainly can't afford to just be palmed off and not know what's happening.

"The chief executive should pick up the phone and tell me what's going on and tell me how they are going to put it right and I hope that's going to be rather rapidly."

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