Telegraph’s Senior City Editor Ben Wright said the complicated matter of pensions in the United Kingdom has become troubling for savers. Due to pensions being tied to indexes and other financial vehicles that actuaries could only keep track off, the regular saver could not estimate the amount they need to set aside and where to invest and place trust for the well-being of their pension pots.
Wright highlights that in most companies pensions is the deal-breaker among employers and employees. He commented it had also caused some of the biggest upsets in the United Kingdom today.
He said the BHS pensions issue clearly showed the pension fund trouble in the United Kingdom, namely the efficiency of maintaining defined benefit pension schemes.
Wright commented on BoE Chief Economist Andy Haldane as while having “moderate financial literacy” as he claimed, Wright said Haldane pretends not to understand the system.
He also said Haldane is “in a lucky position of not having to worry about such things (pensions). As a public sector official he has a final salary pension scheme. ”
But he commends him for raising attention towards the work needed to improve the UK’s savings industry. Wright said the system needs to clarify the hundreds of different costs and charges applied to pensions and investments that the Transparency Task Force uncovered.
Wright said to come up with a hundred fees and charges is not a good way to restore the public’s faith in the financial industry.