Nic Cicutti: The pensions boycott is well founded

No, it’s no ‘well-founded’ at all Nic.
It is, in fact, based on ridiculous notions of fear and ignorance (stoked handsomely by journalists, I might add). Let’s consider:

Numbers of individuals contributing to a personal pension reached a high point of 7.6 million in 2007/08, it dropped to 5.3 million by 2011/12“.

 When you effectively slash the income of the people that were selling them (which is what Stakeholder pensions did) what would you expect? Well, if you were Blair and Brown, the answer is you’d expect people to rush out and buy pensions of their own volition because they have now been made such good value. Well, that turned out okay boys, didn’t it

 “investing in something they understand and feel they have some control over, regardless of the risks

 The key word in that passage is ‘feel’. People feel they have control when they are driving their car. That’s why car travel is perceived to be less worrying than air travel – where you have no control (because you have ceded it to an actual professional). We all know which mode of transport actually IS the safer though.

 “Until advisers and providers start to offer safer, easy-to-understand products with low charges, the consumer boycott of personal pensions will continue“.

 Pensions ARE safe (certainly compared to paintings). Charges are now obtainable that ARE (almost unbelievably) low. As for the complexity, that’s the fault of regulators and legislators – not providers or advisers.

 If consumers ‘boycott’ pensions, more fool them.

 I have no sympathy for people whose foolishness is of such a magnitude that they would choose to listen to sloppy, lazy journalists (Step up Channel 4 – you know what you did) than qualified professionals. As far as I am concerned, these consumers are no better than the idiots who eschew their GPs advice in favour of some wacky ‘alternative’ medicine. Those people will stay ill and these people will retire poor.

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