The prudent may be saving but large numbers of Britons seem to be choosing one of the more capricious options. In its 'Financial Risk Outlook 2005' published recently the Financial Services Authority highlighted the gap between peoples' savings and their expectations of retirement. "A significant minority of non-retired adults, even among older age groups, have made very little or no provision for retirement beyond the basic state pension," says the regulator. "Yet, our survey evidence shows large numbers of people still aspire to retire early."
We are living longer too, and the return on the investments we make now is expected to be lower than projections made five or ten years ago. In other words this generation of savers must put away more now to get a decent pension.
It is easy to think of reasons not to. Despite the tax incentives, pensions are complex and prone to government interference, means tested Pension Credit penalises modest savers, the spiralling cost of housing and education means savers are diverting cash elsewhere, mis-selling scandals have dented the public's faith in the savings industry, and it is much easier to spend.
But despite all this we really have little choice but to provide for retirement, one way or another. There is good news. Simpler rules for pensions come into force in 2006, cheaper Self Invested Personal Pensions mean increasing numbers of savers can manage their own pension, and pensions change is slowly moving up the political agenda.
Savers need information. For that reason I have collected together articles that put the pensions debate into perspective and outline some of the options and alternatives for savers and pensioners. From time to time I will update this page. If you spot anything I have missed out, please email me.
Saving in a pension
How To... Understand pensions
The role of the state, occupational and personal pensions in paying for retirement
How To... Save for your pension
How much you are allowed to save in a pension, and how much you might need to save
How To... Top up your pension
Additional voluntary contributions, contribution limits and how to make the most of tax relief
How To... Understand company pensions
Final salary, money purchase and stakeholder pensions explained
How To... Understand pensions for the self-employed
Personal pension and tax-planning options for the self-employed
The unpalatable truth about pension mathematics
Face facts. The longer you put off saving for retirement the harder it becomes.
Do-it-yourself retirement
What would you do with £70,000?
Richard Byrne decided to manage a portion of his retirement money himself
Property pension
Simon Laight joined a commercial property syndicate in pursuit of steady returns for his SIPP
Armchair retirement portfolio
Learn how Analyst Peter Temple manages a long-term share and bond portfolio
When you retire
How To... Assess your pension options at retirement
Annuities, income drawdown and phased retirement explained
Speaking out on the pensions crisis
Compulsory annuities out with a whimper 03.12.04
The Pensions Bill has not solved the pensions crisis, but things are changing for the better.
Fix the pensions farce now 12.10.04
The best place to start is the State pension, the first floor - where most people live
The pensions asylum 08.11.04
The pensions crisis will not be solved until MPs stop feathering their own nests at the taxpayer's expense
The State of Pensions 28.08.04
Employers are going cold on pensions, the Government is spending less, and Britons are saving less.
Righting Pension Deficits 26.08.04
Companies should be held to account for their pension scheme funds. But the fat cats won't like this solution.
