Pensions Not Meeting Consumer Needs

According to the Pension Report 2007, traditional pensions are not meeting consumer expectations and so many are opting for alternative products.  

The report surveyed 1,000 independent financial advisers and found that 63 per cent were reporting a rise in the number of clients who took control of their own pension, through self-investment schemes.  

The chairman of the Pensions Report, Malcolm Small commented that consumers don’t trust anything that they are told and are using property and individual savings accounts as a way to save for the long-term.  

Our view

The need for control, we believe is a good thing.   If people have a more active role in their pension or investment decisions and are made more aware of what they can actually do with their pension fund such as buying property or taking a mortgage or buying shares, such as self investment, we believe there will be a greater interest and a move to save more.  

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