A pension is an income for your retirement - and many people have worked for years, saving money into a pension pot. They assume this will guarantee them a more comfortable old age. Over the past year or two every day seems to bring fresh warnings that we will not have enough money to live on when we retire.
There is not enough money in pension funds to guarantee a comfortable retirement for today's working population, and it looks as though the total shortfall is wider than previously thought. The public sector pension deficit has increased to £71.5 billion, up from £41.3 billion in 2009. This applies to local councils in England. If district councils were also included then the deficit would be around £90 billion.
Government has been forced to admit that official estimates of the level of pension contributions had been inflated by statistical error. The result is that many people putting money aside for their old age may well find that their retirement income falls far short of what they had hoped.
LCVS is aware that many workers in the sector accrue a number of small pension pots over the course of their career. The information in the full article is provided by Graeme Hind of Arrowe Financial. Anyone considering using a self-Invested personal pension (SIPP) should seek independent pensions advice.