7.1 Planning for a happy retirement

A significant proportion of the population has no plan for a pension other than that provided by the state.

With the state pension age moving up in stages in the coming decades and with evidence that a large proportion of people have inadequate non-state pension plans, there is a critical need for us to plan ahead to ensure that we have a sufficient income for an enjoyable retirement.

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WOMAN #1:

I'm 22 years old now so I think it's a bit early to think about it.

WOMAN #2

I'm 23 at the moment so, um, I think it's probably a good time.

WOMAN #3:

I haven't heard anything positive about pensions, it's not something that I feel I could rely on.

WOMAN #4:

If I, in hindsight, I would have started something like that a lot earlier.

WOMAN #5:

I did start a pension plan when I worked for a company in London but it's frozen at the minute, I'm not paying anything into it.

WOMAN #6:

Well I haven't thought about pensions at all. It's like, seems so far ahead that it doesn't seem comprehensible.

WOMAN #7:

I've actually had a pension since I was 20, which I'm really grateful for now. I'm glad I did it.

MAN #1:

My only pension will be the property or properties that I own when I intend to retire.

WOMAN #8:

I don't know how it all comes about when you actually retire, I have no idea how it all works out. Um, I know I should find out more but I leave that to my husband, which is a terrible thing to admit.

WOMAN #9:

I'm already in receipt of one pension, um, as a result of an injury at work.

MAN #2:

Oh I will get a pension, yeah. I've got some money in a pension, yeah.

WOMAN #8:

I'm not even sure now whether you're meant to retire when you're 62 for a woman or 60 -

WOMAN #10:

I don't know either!

WOMAN #08:

- or 60, I really haven't - I suppose I really should look into it, but I don't understand it.

WOMAN #11:

I do have pensions, um, that you know, obviously as you go from job to job you get different pensions, but to be honest, I don't really understand them and I'll probably only start really worrying about them when I'm 55 or 60.

WOMAN #12:

I've actually arranged to put in some additional money, AVCs, Additional Voluntary Contributions, because you get, um, tax allowance on that.

MAN #3:

I'm only in my late 20s, so I'm not, I'm not very keen to get a pension yet. I know that I would save money in the long run by, by getting one now, it would be, it would be financially beneficial, but, at the moment I just can't justify, um, getting one because I don't have that much of a disposal income and I'd prefer to invest in, in other products.

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