Thursday, 26 May 2011

Why the Ostrich label could ruffle feathers

Today HSBC describes workers as an "Ostrich Generation" for not saving enough in pensions.

This is a good marketing slogan for the financial services industry but could annoy hard-pressed families, struggling to pay the mortgage or rent, let alone save for a rainy day.

Also, it lays the blame on individuals, rather than employers, financial institutions and successive governments.

Yet:

*Employers won't provide reliable pensions any more.

*The state is wriggling out of earnings-related pensions in favour of a flat rate payment.

*Personal pensions have been a big disappointment for many savers.

*Plenty of people still remember the pension rip-offs of recent years.

The Ostrich label implies that people are foolish. Well, maybe some are, but plenty have been thinking hard about the future and worry about it a lot.

They see pensions as risky, uncertain and they're concerned about locking savings away where they can't get at them..

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