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Understanding private pension rules
Comments
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Maybe we need IQ tests for drawdown.It would be expected that someone with a low IQ (to put it bluntly) would not be suited for drawdown or any contract that is more complicated.
I think the letter was more prompted by ire over the GAD changes and benchmark choice and what that did to a plan that was working (though without adequate safety margins IMO).You have to remember that the average person is clueless and a good proportion go looking to blame someone else for their mistakes. The fact this person wrote to a newspaper about this tells us what their level of knowledge was about a high risk transaction they entered into.0 -
I am with you on the IQ test.
Sounds like this person NEVER shouldhave had DD. We are considering if for part of our retirement Only because we have extra funds outside pensions.0 -
Maybe we need IQ tests for drawdown.
Extend it to mortgages as well. You could also extend it to investments and insurance. You know the FOS had a complaint from an accountant that the FOS upheld because the accountant couldnt be expected to understand the taxation on an investment.
When an adviser writes a suitability letter on the advice being given, the length will be around 15 pages. About two will be op the reasons why and the rest will be on the reasons why not everything else. The whole thing is geared currently to protecting the backsides of those that put them in place.
I am all for people putting in complaints with wrong doing. However, the damage that these try-it-on complaints or "i'm stupid so need consumer protection" complaints do cannot be underestimated.So why do we have people in drawdown who don't seem to understand the nature of the beast?
Because they can DIY without an IFA being involved. Or you get a client that makes all the right noises. Tell you they understand, you document everything involved and they acknowledge it all including the risks only to complain later that they didnt know the risks.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Then you play the video recording of the discussions... which will surely happen at some point.0
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Jem16 - dunstonh - jamessd
Thank you all very much I can see now it will not affect me as I am on a final salary pension.0
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