In response to the Government report published this week, I would like to voice my opinions on its contents as follows.
When our forbears wisely thought of maxims such as you can take a horse to water but you can't make it drink, they did so because they had an element of truth. It is high time Ron Sandler was reminded, albeit rather late in the day, of the above adage.
The Government can have all the low-cost products they want. If people are not prepared to save, then there is nothing to be done about it. If the Government should make saving for the future compulsory, I believe that it may well be their Achilles' heel. Lack of saving is borne out by the poor take-up of stakeholder pensions and cash Isas. Furthermore, I would add that people only have so much disposal income and they are entitled to spend it as they wish. They would rather buy a house or a car, go on holidays, purchase up to date modern appliances and have central heating and so on.
Similarly, shortage of disposal income is evidenced by the increased rate of loans applications. It should also be noted that before any long term saving can be taken up, life insurance (preferably with critical illness cover) and income protection has to be considered – again – putting long term saving rather towards the end of the line.
From this it can be easily deduced that Sandler may have put the cart before horse in that he should have been looking more closely as to why people will not save, rather than send IFAs (and investment houses) as sacrificial lambs to the slaughter. I am most perturbed that the Government spent so much public money producing this report, when the end result was a forgone conclusion.
They know all along they are going to depolarise theIFA Industry and everything in between is just a softening-up process.
Personal Investment Planning Services,