We apparently have a new Pensions Minister, Alex Burghart (me neither). According to those who know, he’s ‘consistently voted against increases in benefits and measures to prevent climate change’. One area I’d suggest he urgently reviews is the regulation of SIPPs (self-invested personal pensions). Almost weekly, we’re asked to cough up compensation for those who’ve been persuaded to move their pensions to one, then to invest in dodgy, unregulated, high risk investments, whence their funds not surprisingly wither to nothing. The focus has always been on trying to regulate the advice; which has never worked. What needs to change are the investments which pensions are allowed to hold. Surely it makes sense that these be regulated investments only (which most punters assume is the case), and excludes, to quote a recent example, probably-non-existent holiday homes in Malta offering a 15% pa guaranteed return? I suspect Alex may consider this a restriction on free enterprise; but let’s hope common sense prevails.
This month’s Interview: Nigel Clarke – Protection Specialist
Join us as we speak with John Butterworth, independent financial adviser at Philip James Financial Services. We learn about John’s background and talk about savings, investments, and how we can help manage your pension.