Pensions and Astronomy
I hope that this week’s set of BeeLines have left you with a clearer picture of what this new pension legislation set in train by the Pensions Act 2008 is all about.
These BeeLines were inspired in part by my recent Pensions Radio discussion with Robert Reid (Robert Reid on Pensions Radio) where Robert said that he thought looking at pensions from the point of view of cost was a bit like looking through the wrong end of a telescope. I agree with that. It seems to me that all this new legislation has been built-up from the wrong way of looking at pensions. Approaching pension saving from the required contribution level rather than from the required level of pension outcome is completely wrong.
If we’re not careful the message that will go out about pensions into the world is that a good pension can be put together on the cheap. It can’t, and never could be. A decent pension, as any financial adviser will tell you, is a serious lifetime purchase.
If we want to get a good understanding of pensions, just like if we want to get a good understanding of the Universe, it helps enormously if we start off by looking through the right end of the telescope. Looking through the wrong end just makes things much more difficult…
27 March 2009
Any research and analysis has been provided by us for our own purposes and the results of it are being made available only incidentally.