In the back
[ PLATFORMS & PENSIONS ]
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John Blowers says switching from
saving to spending your pension
may sound simple, but lengthening
lifespans and poor annuity rates
have complicated matters
Muddying
the waters
P
ensions are a miracle of
salesmanship. If somebody
asked you to give them
around 10 per cent of your
salary each month and said you
will get something back in 40 years’
time, with no guarantees as to what
that something will be, you’d be well
within your rights to chase them down
the street.
Yet almost all of us choose to buy a
pension (or are compelled to) without
really understanding anything barring
the broadest concept of providing for
retirement.
Even for people who take an above-
average interest in retirement
planning, every time you think
you’ve learnt it all, another layer of
complexity becomes apparent in the
labyrinthine world of pensions.
TRUSTNET
What I really want to know is, will
I have saved enough money when I
retire to live a decent life? The one I’ve
been dreaming of as I travel home on
the M25 on a busy wet night or ride
back on a crowded train.
You’d expect some clear answers to
the following questions: how much
do I have to save each month? From
Almost all of us choose
to buy a pension (or are
compelled to) without really
understanding anything
barring the broadest
concept of providing for
retirement
what age? What will I get when I
retire? What monthly income will
that give me? What lifestyle will
that provide? For how many years
in retirement? What about my
partner? What if I live a long time?
What if I get ill?
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