Trust and stewardship
Sir: Lord Bruce-Gardyne (22 October) scoffs at Margaret Drummond (Times, 15 October). Is he, perhaps, less aware of the inflationary experience of the self-employed with their pension funds? Between premium and pension such thrift becomes
entirely the tax-free privilege and responsibility of pension funds. The prospective pensioner has no control. Does such trust not demand just stewardship?
Consider one actual experience of relative performance, percentagewise, (albeit after adjustment to eliminate intervening change of procedures). The premiums were two equal lump sums: A at age 491/2 (1969); B at age 561/2 (1976)
Full pension 1980 1985 1990 A 100% 151% 244%
101% 170% 295%
Thus, although A was 3 times longer (by 1980) under such stewardship and was worth some 2'/4 times B on the RPI scale, nevertheless such early thrift profiteth. nothing. On the contrary, incongruity, increases with time.
'First prize: one week's holiday; second prize: 2 weeks' ...'
John Murray
Margrie, Borgue, Kirkcudbright
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