Warning: saving for retirement
The work being done on the design of personal accounts is shining some much needed light into dark and murky corners.
Take the paper published this week by the Department for Work and Pensions on guaranteed investments and their suitability for inclusion as an investment choice within Britain’s new national pension scheme.
Written by David McCarthy of Tanaka Business School and based on economic modelling, it concludes there is zero demand for guaranteed investment products where guarantees are priced using financial techniques commonly used by banks that sell financial guarantees.