Recent research from Which? has found that only one in nine people would trust the financial industry to look after their pension. When asked which type of organisation they would trust to manage their pensions, two out of five respondents said that they would have more trust in an independent organization, and a further 20% said that they would have most confidence in the government!
Which? believe that this survey has shown that the National Pension Savings Scheme has the backing of consumers.
Our view
Another great help in building consumer confidence - we think not. The sad fact is though that Which? is telling the truth. The only way for this country to improve its savings ratio - whether it be pensions plans or anything else is:
1. Education - we have to teach people in schools at a very early age and
2. To ban commission based products and set industry standards on what should be paid for certain types of work. Fees remove bias, commissions promote poor practice, whether we like ot or not.
Independence can only be independent if there is no commission linked to the size of a sale.
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