Do it yourself: the joy of SIPPs

If you think pensions are boring, how exciting do you think poverty in old age will be? I only ask because conventional attitudes to this problematic topic are not just dangerous but also out of date. Most people know that failing to save will not prevent them growing old. Fewer realise how recent rule changes have removed many of the more rational excuses for shunning pensions.

First among these is distrust of insurance companies. The age of deference ended long ago and one unexpected casualty was the with-profits fund. People are no longer willing to buy financial products they do not understand simply because a man in a suit says it will be good for them.

If a clever salesman does succeed in clinching such a deal, consumers are more likely to seek compensation than sit back and hope for the best. Equitable Life had more actuaries than God but its attempt to mystify pension savers by redefining the meaning of the word ‘guarantee’ ended in disaster.