Pensions are officially too difficult to understand

19 May 2016
Pensions are too difficult

Pensions are not easy things to get your head around, and if your average person wouldn't know where to start when looking for the best pension deals, or what have you, then you'd hope an expert would be able to help.


Well, one of the top banking officials in Britain - Andrew Haldane who is the Bank of England's chief economist - says that he cannot make "the remotest sense" of most pension deals.

Maybe it just isn't his area of expertise, and other people will be able to help us all.

Doesn't seem to be the case - Haldane added that we've got no chance of making informed decisions about the best pension plans when experts and financial advisers "have no clue either".

It is obvious that the whole system needs to be less complicated, and speaking at the New City Agenda annual dinner, Haldane said wanted to see something done.

One of the things he'd like to see, is the way maths is taught in schools. He thinks that the curriculum should look at helping children to understand "big financial decisions."

He added, that it isn't just a case of us all being thick: "Of course, part of the reason so many members of the public find finance difficult is because it is difficult - and, sometimes at least, it is made deliberately so."

"There is plenty of evidence, including from the financial crisis, of financial products being made more complex than was necessary and consumers being charged a premium for buying them."

"This damaging cycle persists because of the difficulties consumers understandably face when trying to compare these products."

"Conversations with countless experts and independent financial advisors have confirmed for me only one thing - that they have no clue either".

TOPICS:   Banking

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