Champagne down the drain

I had to laugh at the NAPF’s DC connections seminar yesterday afternoon. Despite the obvious evidence that the majority of people retiring from occupational schemes are taking the first offer that comes their way, the general mood in the room appeared relaxed to the point of complacency.

I had to laugh but I wanted to cry!

Shaking the Daily Express‘ report on Civitas’ latest findings (75% of your pension blown”), pouring our champagne (red bull) down the drain, what more could we do?

Short of shaving our heads, donning  buddhist gowns and setting fire to ourselves, I don’t think either of us could have put our point more vehemently.

85% of the pensions processed by one of Britain’s leading annuity advisers arise from equity based funds!

80% of the opportunities for enhanced annuities going a begging?

A legacy of personal pension and Retirement Annuity Contracts with up to £20bn of unclaimed pensions just orphaned!

As Jerry Ghandi said, and said verybravely-

 this is not an issue for companies, trustees, advisers , insurers or members, it’s an issue for everyone.

Yet I fear that it will not be till a company or trustee board are sued for negligence that this complacency will be shaken.

No one wants to hear this, no one will thank you for saying it, but the fact remains that we are not doing the right thing for the people who burden the charges which pay our wages – the DC members of our occupational pension schemes, the people who purchase personal pension plans.

It is not too late to resolve the issues surrounding poor “at retirement” decision making but with 450,000 people due to purchase annuities over the next twelve months, it’s time for action.

 

 

 

About henry tapper

Founder of the Pension PlayPen, Director of First Actuarial, partner of Stella, father of Olly . I am the Pension Plowman
This entry was posted in annuity, dc pensions, de-risking, mallowstreet, Martin Lewis, Retail Distribution Review, Retirement and tagged , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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