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Make the switch to money purchase

I don’t know how much more of this nonsense I can take. Joanne Segars is very knowledgeable when it comes to defined-benefit (final-salary based) pensions but the stance she is taking when representing the National Association of Pension Funds can only be because of vested interests. Let us hope that the Mad Hatter rejects her request for the Government to guarantee the Pension Protection Fund.

Most defined-benefit schemes are good for the members and in an ideal world would be best for all UK citizens but the truth of the matter is that such schemes are not viable and make no economic sense in a capitalist economy.

UK plc is already bank-rupt and simply cannot afford to underpin such pensions and it is time for all such schemes to close but how can this be achieved when those that run this country are members of such schemes and think only of themselves?

For the good of the UK economy, we have to urgently persuade MPs, the trades unions, local authorities, banks and building societies, some charities and monopolistic companies such as the utility and newspaper groups to bite the bullet and transfer to money purchase personal pensions so that all UK citizens have the same degrees of risk with their pensions.

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A clear case

The move to wrap sneaks up on you. Piece by piece, the evidence amasses that this is the correct solution for clients and business, until it is so conclusive you wonder why you did not see it sooner.

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