Frank Howarth is not looking forward to his retirement. A businessman in his fifties he has followed Government advice and saved hard for his pension. But when he retires he will not be free to invest his hard-earned savings. He will have to follow government rules and that may mean he will have a lower income in his old age than if he was free to use his own skill to invest his own money. He thinks that is wrong.
"I would do better leaving it in a building society than buying an annuity. But that’s what the Government makes us do. And why the government won’t let us control our own pension pot. The problem is the way the financial companies sell you pensions is very dubious to say the least. What they should say is - you give us your money, we’ll charge you to invest it, and when it matures we’ll keep it and pay you a pittance. I want to know why the financial services industry gives us such a bad return on our investments."
As part of the new series of Inside Money, Frank will be given the chance to argue his case with top insurance providers and find out why he’ll be forced to buy an annuity - an investment he does not want. Over the next six weeks, Frank and five other Radio 4 listeners, accompanied by presenter Lesley Curwen, will be taking their own money worries to the people who control our financial lives and those who try to sell us things. Lesley Curwen, an experienced business journalist herself, says the series is unique.
"Inside Money lets listeners use the resources of Money Box to put their own questions directly to the bosses and the Government Ministers. It is real people power."
In the first programme of the series, Lesley will be helping another listener to investigate money circulation schemes. They are an expensive version of the old chain letter – you send a letter to six people asking them to send letters to six people, with your name at the top of the list, then eventually your mail will arrive by the sackload. Only now they ask you for £3000 cash upfront, on the promise of £24,000. Simple arithmetic says it can’t work – at least not for everyone. And if it does, for each person who turns £3000 into £24,000, seven others lose £3000. Many people have been conned. Inside Money will ask where these schemes began and why they keep on spreading. They could be invade your community next.
Series Producer Lynne Jones says the series will be entertaining but challenging…
"It is often the naïve question from the member of the public that floors the experts. There will be quite a lot of professionals out for the count by the end of Inside Money."
Inside Money is on Radio 4 on Saturdays at noon from 21 July,
repeated Mondays at 3pm.
Money Box returns on September 1st.
21 July 2001
e-mail Paul Lewis on paul@paullewis.co.uk