Will Aussies dare compare their pensions?

It’s a big question in the UK too. “Never mind the value, keep giving us your money” is the key message from pensions providers. I’ve been told many times over the past six months that if we give people comparative performance scores on their pension savings, they’ll stop saving and throw their toys at their provider.

I have never seen evidence that people who have harmed proceed to self-harm. I have seen plenty of evidence that when people get poor treatment, they take their custom elsewhere.

This appears to be what’s behind the providers baulking at being held accountable for the performance of their funds and it doesn’t wash.

Some time ago , Dr Chris Sier and I had the idea of giving institutions and savers the right to understand value for money. For institutions is very much about understanding the costs and charges incurred on member’s funds – Chris has started ClearGlass but remains a major shareholder in AgeWage.

AgeWage aims to provide in as single score, the value people have got for the money they have had invested in their pension.

AgeWage and Clearglass are both receiving considerable pushback from those who manage our savings though I am pleased to report that both firms are prospering.

Whether it is Australia or in Britain, people have a right to know how their money has been managed and the outcomes of that management. I take my hat off to the APRA’s Helen Rowell for the position she is adopting and hope that we can see her over in the UK in the not too distant future.

 

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About henry tapper

Founder of the Pension PlayPen, Director of First Actuarial, partner of Stella, father of Olly . I am the Pension Plowman
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