Paresh explains why pensions stagnate: advisors meet clients once a year or less, lack real understanding of risk, and follow compliance checklists instead of actively managing money. The industry's structural setup prioritizes box-ticking over genuine growth.
Hi Paresh, why do people's pensions fail to grow? That's the question we're answering today. Now you have gone through a lot of pension reviews for people. We do free educational pension reviews. Tell me, what are your findings?
Well, it's interesting because since we started this journey, when we weren't asking so many questions, and we are now asking far more deeper questions on principles on why people are almost stuck in their positions and the frustrations that come from it. Primarily there are, having looked through all the, and we've done quite a few since we, since we started this journey, we've reviews. Having looked through all of them, the frustrations lie in the, in the fabric of this industry, the way it's set up. It's set up in a position where the clients ultimately have a number of places to go. They're all doing the same thing, which is you give us all your money, we will manage it, so-called in quotes. There's no real management involved. They literally just stuck in that position. And then every few years they'll have a meeting, or maybe once a year, a meeting with their financial advisor who doesn't actually understand risk themselves. So it's very difficult to learn when the person teaching you doesn't understand the principles of what they're doing, but they have a rulebook they have to stand by, which is what it seems to be. The industry is set up almost for failure in this regard because you're giving people money and they have to tick certain boxes for them to keep their job, as it were. It's frustrating on many levels.
