One of the ironic things about insurance is that it is a vital part of our lives and whether it is health insurance, home insurance or pensions, our choice of product can have a profound impact on our lives. I say ironic because despite the importance of insurance, many of us simply do not have a clue when it comes to the terminology and the products themselves.
If you are in the camp who do not understand annuity rates from interest rates or bonds from ISAs, you are certainly not alone as there are many people up and down the country who are in the same boat.
The problem is that many people are too afraid of looking stupid to ask the questions and this means that all too often they get themselves into policies and products which are totally unsuitable for them.
The pension people and advisors do try to help, of course, and they ask questions such as whether you prefer low risk, medium risk or high risk. But at the end of the day they get their commission on selling these products and so you can never hope for totally impartial advice.
Try and brush up on some basic knowledge before you go to see your pensions advisor, so that you have at least an inkling of what they are talking about.
