OpinionOct 30 2014

Pension fund protection is also important

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I am writing in response to the story that individuals facing bankruptcy could be at risk of having their entire pension fund stripped to pay debts.

The economy relies on entrepreneurial activity, and while a degree of churn is good for the macro-economy it is disastrous for the individuals involved. Insolvency is rarely the easy way out some would suggest.

I do feel sometimes we are ignoring the benefits we all receive from a few people choosing to take entrepreneurial risks. If you supply someone who subsequently folds then you have either not successfully appreciated the risks involved or you take the grown-up view that there is no profit without risk and that some people will be unable to meet their liabilities and make sensible provision for it – it becomes a cost of doing business. In none of this is there an imperative to destroy the debtor – indeed, that would be counterproductive for all involved.

The protection afforded to pension funds is a positive influence on entrepreneurial activity and should be cherished.

Richard Ross

Chartered financial planner, Chadwicks, Norwich, Norfolk