Pensions are rubbish!

The title of this blog just about sums up the consensus in the ‘non-financial’ media regarding the issue of saving for retirement.

If you are inclined to follow this view, I thought it might be useful to offer some suggestions of alternatives strategies for providing an income in retirement.

(a) Sell your home and live in a tent. (Risk warning – you may be asked to move on, frequently, especially if you decide to live in the middle of a roundabout on the A3).

(b) Die before you retire. (Risk warning – this impacts somewhat on the ability to enjoy a long and happy retirement, although it may secure the future for your dependants, especially if you have substantial life assurance cover).

(c) Place your life savings on number 27 on the roulette wheel (Risk warning – this number does not come up every time).

(d) As (c), but on Pigalle Lady, in the greyhound meeting at Wimbledon in November, currently offering odds of 100/1. (Risk warning – I am reliably informed that this puppy may not be blessed with a full complement of legs).

All joking apart, there is no realistic alternative to saving for retirement (unless you are a long-term member of a ‘gold-plated’ final salary pension scheme), and the recent Budget confirmed the continuation of generous tax relief for pension contributions.

In a time of fiscal austerity, this opportunity should not be wasted, and you should seek independent advice, in order to help you plan ahead for what could be the longest holiday of your life!