Pensions

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1. Don't rely on the state scheme!

Why spend hundreds of pounds a month saving for a private pension when the State provides a pension?

There are four very good reasons:

1. All the main political parties agree that the state pension system is too expensive to support, and are intent on shifting the burden to the individual. The basic pension will remain but its real value is likely to diminish.
2. This reduction in the role of the State is not a long term goal that will only affect your children's children. It is happening right now.
3. Even if you have paid national insurance contributions (NICs) all your working life the most you can claim currently is just £95.25 a week (£152.30 for married couples). For most people, that isn't enough to live on.
4. Not many people qualify for the additional benefit available from the state second pension (S2P), and if you are self employed you are not entitled to S2P at all.

For all these reasons, the era of cradle-to-grave welfare is past.

Individuals need to plan for their own retirement in advance, and for most people this means organising a personal pension well in advance of retirement.

1. Don't rely on the state scheme! 2. Private pensions: your most tax efficient investment 3. Company pension schemes 4. How to top up your company pension 5. Factors when topping up a company pension 6. What if you change jobs? 7. SSASs for small companies 8. Personal pensions 9. Value for money personal pensions 10. Aim for a balanced pension portfolio 11. How much can you invest in a personal plan? 12. Choosing a fund 13. Personal pensions with greater investment scope 14. Use your plan to get out of S2P 15. Do you need an adviser? 16. Conclusion

• Pension Power