A new shop, a new product needed
We need a new shop and a new product. We don’t want Harrods and we don’t want Poundland. We want a shop which sets things out as clearly as the video but offers an option that doesn’t demand an adviser, or an annuity purchase or a tax-bill.
All the research points to the conclusion that when people come to retirement they want to buy an income for the rest of their life. They want a product that they can understand, that is managed for them by trustworthy people – a product rather like the pensions their Mums and Dads had when they retired. And they are not getting them.
Shop in Harrods or buy from Dr Hook’s Medicine Show
The longer we have this chaos, the longer we don’t have a simple pension of the type I describe above, the more people will buy outside the shop from the cheap-jack charlatans scamming fake products on the street, using boiler-room tactics – sending bikes round for the paperwork and bamboozling people out of their savings.
The best – the only -way of combatting fraud is to cut out the rubbish that feeds it – at source. Fraud breeds on the frustration of ordinary people to buy what they want at an acceptable price. The pension scamsters are offering a plausible alternative and because people are shopping in the wrong shops and being offered the wrong products, many are choosing to buy from Dr Hook and the Medicine Show.
A way out of chaos
It’s all very well us wringing our hands and pointing to the laxitude and lassitude of people in their behaviours, the problem is of our making and until we offer decent products and a decent shopping experience, people will become weary or cocky and buy poorly.
The answer is in a collective pension spending scheme, such a scheme is waiting to be built, the rules for it were written into the last Pensions Act and the secondary legislation is now being teased out within the DWP.
We will get this product, the question is when. It is now time for people to turn their minds to alternatives to the chaos and the sooner the better.