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Whatever the decision on price caps, it is clear that people are not saving enough to secure their financial futures. What we need is a product that is attractive to buy for the consumer and to sell for the provider
There has been an active debate about the price cap on stakeholder pensions and Sandler products - should it stay at 1 per cent or should it be increased?
Whatever the outcome, one thing is clear - people are not saving enough to secure their own financial futures. In the short term, this is painful for providers and distributors but the real loser is UK plc and the millions of individuals who will reach retirement without the necessary funds to meet their lifestyle aspirations.
To encourage people to save and provide for a comfortable retirement, we need good products which are attractive to buy for the consumer and attractive to sell for the provider. We need companies that are financially strong today and in the future. We need regulation that protects consumers at the appropriate cost. Most of all we need informed and confident customers.
Underpinning all this is the price cap - the level of which will determine...