Drum Magazine Issue 3 | Page 46

Drum: ENTERPRISE Who knows, maybe there is another way? Maybe the Government has some grand plan to dig us out of a hole which it may not have created, but has done precious little to resolve. “The time to act is NOW! ” The major findings of the Turner report are due out later this year…but almost certainly not until after the election. Blair has a bit of breathing space – a few months to make hopeful noises about the possible findings of a report that is yet to be published, and to placate the electorate before revealing that, in actual fact, the only way to solve the problem is to force us to work longer after all. Take an interest in your pension scheme. Diversify if you possibly can – avoid putting all your eggs in one basket, as you run the risk of losing everything should you fall victim to the next Mirror Group / Allders style disaster. Even though the crisis is most imminent for those in their 50s, rapidly approaching retirement age, there are still things that can be done. And for those young enough to have time on their side, the time to act is NOW! Face it: no-one’s going to do it for you… your financial position in the present is the best way to safeguard the future. • Make saving a habit – ISAs are a good option, and allow you to keep your cash accessible, and your options open. • As difficult as it may be, don’t make passing on money to your kids a priority. Th is simply may not be an option in the future, and they would want you to be comfortable in the retirement you have earned. • Think about developing skills or making plans that will allow you to make a living when you are older. If the Government is going to make it compulsory for us to work later, we may as well be prepared. IT’S NOT TOO LATE! IF YOU ARE... • You have the option of joining a company pension scheme. More than likely your employer will be contributing to it too – not taking advantage of this is voluntarily forfeiting money that you are entitled to. • The accepted rule of thumb is that the percentage of your income you should aim to pay into your pension fund should be about half your age when you start. For instance, if you start at 20, aim to contribute 10% ; 15% if you start at 30 and so on. • Make sure you understand the terms of your pension. If it isn’t entirely transparent it is the pension provider’s fault. But it’s your responsibility to put yourself in the know. UNDER 40 If we can learn anything from the present situation, it’s that we are going to have to get ourselves out of this mess. And easy as it may be to try to lay all the blame at the door of government and big business, pensions are our responsibility. The ‘moral contract’ is a thing of the past. We are going to have to stand alone in the future. • Try to start paying off debt: improving OVER 40 44