Pensions: the trust has gone

EdInvestor

From IFAOnline

More than 80% of IFAs say clients use alternatives to pensions in retirement planning, according to a report by financial services publisher Tax Briefs.Malcolm Small, chairman of The Pensions Report, says: “[Consumers] appear to be voting with their feet and walking away from pensions as a vehicle for retirement saving.

“It has become clear that consumers are, for a range of reasons, completely disengaged from pensions as a whole, whether occupational or personal. They simply don’t trust anything they are told about them, whether by government, employers or advisers.”

m_c_s

or maybe dont understand them anymore,

or dont want to pay someone to advise,

or realise money is locked away for very long time,

or they want to live today and pay tomorrow (or somebody else will pay tomorrow!)

purch

or maybe dont understand them anymore,

or dont want to pay someone to advise,

or realise money is locked away for very long time,

or they want to live today and pay tomorrow (or somebody else will pay tomorrow!)

......or all of the above !!!!

Can't remember the last time I saw or read a positive article on Pensions in the mainstream media. Just about everytime they are mentioned the word 'crisis' is also adjacent.

It's frightening to think that with our national disinterest in saving, so many have no sensible plans for providing for their future needs other than hoping that their property will continue to increase in value and bale them out.

dunstonh

People dont understand the difference between the different types of pension and the media doesnt help. I put most of the blame at the door of the media. Poor quality reporting and a gullible and generally low knowledge public with no interest in the subject.

peterg1965

I also blame the Government (not just this one). There is too much tinkering with pension legislation which leads to confusion. Changes to pension regs for the better is OK but when new rules make it worse, or more confusing, for some that is when public confidence plummets. Take the ridiculous Lib Dem view to get rid of higher rate tax relief, thank goodness they will never be in power, but if there was a likelihood I would be in two minds whether to invest. There needs to be cross party agreement on pension issues.

EdInvestor

There needs to be more flexibility and simplicity.

Just look at the mess that is caused by the separate rules on protected rights pensions - that needs to be completely canned for a start.

Geoff_Hunt

I think pensions are a thing of the past. No one wants to say it now because we all have to pay into them to make it work. Lets face it there is not going to be enough of the young uns to pay out so just let it go.

For every promise and every bit of advise just say to yourself "yes but what can happen at the eleventh hour". They ll pull the rug thats what.

My view only.

Andy_L

Geoff_Hunt wrote: »

there is not going to be enough of the young uns to pay out so just let it go.

Only really relevant to unfunded schemes like the state pensions & most public sector schemes.

dunstonh

and just highlights the damage the media has done in giving people the wrong impression. How many times have we seen that sort of error on these boards before.

EdInvestor

Terrible isn't it, you'd think only young people pay tax when everyone knows it's the oldie babyboomers who own most of the wealth and are paying fat tax bills on their chunky company pensions.

Not to mention the dreaded IHT when they pop their clogs as well.