Savers very dissatisfied with pension returns

Speaking at a London pensions conference, Steve Webb stated that he is aware of the resentment felt by many savers that have suffered dips in their funds due to poor return rates.

The statement came just a few days after the Government stated that it will now change the calculations behind private sector pensions which expects believe will cause lower retirement payouts.

Webb stated that the worse advocates of the savings and pensions programs are those that reach older age and say that they wish they had not saved their money given they watched their neighbours purchase expensive goods while they saved and were not able to get much for their trouble.

He continued to explain that those who made an honest effort to save only not to see a large reward, but also often are the most resentful and serve as the largest obstacle combating the promotion of the pension programs.  He said that this needs to be combated by making sure that those who have saved are better off for their efforts.

Those who have suffered from poor pensions and savings are usually those who were hit with low annuity rates and the recently retired.  Those who held funds in Individual Savings Accounts and bonds also saw the rates plummet due to the financial crisis and felt the crunch.

According to a report titled the Scottish Widows Pension Report, women that are fifty and older were hit the hardest.

Pension expert Laith Khalaf from Hargreaves Lansdown, stated that he could not agree more with the sentiment that resentful pensioners need to be combated because pension credit right now does not look positively on saving and rewards.


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