I know the value of peoples pensions have taken a huge hit over the last year and if the fund managers were doing their jobs correctly this should not have happened, no........ especially to those who were close to maturity because the funds should have been put on relatively low risk funds?
Surprised that few people/ experts in this area have come back on this post. Are people afraid to tell things as they are? Am i the only one with these concerns? The lack of response makes me even more unsure
That is a very poor analogy. Endowment mortgages are based on investing rather than repaying debt. In general pensions do not involve this type of gearing and it is misleading to make the comparisonEquity based pension-products are endowment mortgages in disguise.
The reason why the industry and agents are so keen to flog them to the punters is because they provide a pretext for gambling on the stock market with your money, charging you exorbitant management-fees for doing so, and taking a chunk of the gains when they (almost never) win, while forcing you to shoulder all the losses when they (usually) lose.
If these people were subject to the same consumer protection legislation as other providers of goods and services and the banks were held liable for the fitness for purpose of their products and the actions and advice of the agents who sell these products, they would be withdrawn from the market in the morning.
You should see if you can get someone to provide a product which is invested in an interest-bearing cash account "tracked" indefinitely against the base rate. Sadly, no such product is currently available. AIB, PTSB and Eagle Star all have cash-based products, but the small print reveals that after a short initial come-on period when the interest rate is "tracked".
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