Certified Actuarial Analyst

[mpyan1]

However the issue (as mentioned in the many press releases) was that people didn't shop around for rates but just took it from their pension provider which may not have always been the best deal. Therefore there was a need to help individuals to shop around on this financial product like they do on all other forms of insurance.

Those pension providers employ Chief Actuaries, who did nothing to remove those products with poor rates.

Turkeys don't exactly vote for Christmas. That's no excuse for knowingly ripping people off.

 

[John Lee]

Those pension providers employ Chief Actuaries, who did nothing to remove those products with poor rates.

I'm still not sure what rip off rates you are referring to - perhaps you could name a company and the rate offered and then we'll be able to analyse this according to current annuity tables.

However, just because someone's rates may be cheaper - does that mean it's better? If the company has used an optimistic basis to price their product then surely they're likely to come unstuck later. Differences could also be simply due to their pooled risk - so if they have a healthier group then their rates will be better...

For example, the last government took the optimistic assumptions from the GAD to say there was no pensions crisis. 10 years later the crisis that was always there is now bigger. Was the problem better?

 

[Calum]

knowingly ripping people off.

Then why did no company come forward with slightly better rates and take the entire market?