Pensions - your views

Britons may have to save more for their pensions

Britons are set to face some stark choices over their pensions with the publication of a new report on Tuesday.

The Pension Commission's independent report is expected to warn that the UK population needs to save more or work longer to make up a huge £57bn shortfall in the UK's pension pot.

The Chancellor has already ruled out tax rises to cover the shortfall, and with an estimated 13 million people not saving enough to see them through their retirement, the problem seems set to remain.

What are you doing to plan for your retirement? Tell us about your retirement choices - how much you're saving, what kind of pension you have, if any, and what your financial expectations of retirement are.

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Your comments:

My wife and I have given away 10% and saved 10% of our income all our working lives. We expect to be better off in retirement than we have ever been before. There will be no National Insurance contributions to pay, and we will stop saving on the day of our retirement. We will then try to spend all our money as systematically as we have saved it, so that it runs out on the day that we die. That will be the tricky calculation.
David Butland, Bradford, Yorkshire

I have a work pension but we're taking the view that we have to plug any gap ourselves and I'm certaintly not working longer. We're currently holding some cash which is offsetting the mortage, buying shares, a few premium bonds and hope to get an index tracker started next year.
Nick Hannah, Bradford, England

Due to the future being so uncertain, I think that a diversified portfolio is the only way forward. My aim is to have a mix of investments in pensions, property and shares. You just don't know what's around the corner. In a kind of negative way, I am half expecting the failure of one of these, but hopefully this will be compensated by the good performance of another. These days, I just don't see how you can rely on one type of investment like in years gone by. I am in my twenties and luckily have the time to invest wisely to look after me in my later years.
Mike Rogers, Manchester

I am one of those conned into transferring from a final salary into a money purchase scheme, just before the chancellor decided to tax pension dividends. I am now having to work up to 3 more years to recoup my losses. The best way to encourage savers to return is to make saving in equity funds more attractive again - remove this tax.
Geoff, UK

We have an interest only mortgage. We'll have to pay it off somehow at the end of term. Selling to pay off the mortgage is a miserable prospect as I like where I live. Since 88, I've been saving into a private pension scheme, and paying self-employed NI contributions. I can't afford to pay more into the PP. I must do something. A serious money-making venture such as buying and selling property is one plan. I don't trust PP schemes frankly. Best to make your own money. Saving could be risky, not sensible.
Tom, London

Ever since Gordon Brown taxed pensions in 1997 (which despite being implemented immediately, was never mentioned in Labour's manifesto), I have stopped adding to my pension fund. I have decided there is no point in saving when this spendthrift Chancellor will penalise any saving. Since Gordon is confiscating my pension fund now, he can hand it back in means-tested benefits later.
BF, London, UK

I have 15 years to retirement and we have recently adopted two children who will be of college age about the same time. It's going to be interesting! We have a college fund (just in case) set up and are diverting money destined for pensions into that as we see that as the bigger priority. We are also doing a complete household budget to look for savings to divert into the pension funds. This has already revealed a couple of big surprises. If necessary we will have to find work to generate enough income to cover the shortfall. We are fortunate to be flexible and have a range of skills not all work related at present. But it will be worth every penny for our children.
Clive, Milwaukee, USA/ Ex-UK

I left public sector employment 4 years ago. I took out an expensive personal pension plan to replace my previous non-contributory pension scheme. I may as well have stashed my contributions to the new fund under the mattress - having burnt 10% first. The returns on pension funds are, in my experience, very poor and yet we are encouraged to contribute more!! My advice is to spend your hard earned cash while you can or invest in something with more chance of financial return - like betting on horses.
D McDonald, Armagh, N. Ireland

I was made redundant at the age of 56 (now 63). Used the money to pay off my mortgage. Have a small occupational pension and will downsize our house to release a tranche of capital to supplement my income. If we live long enough, will then get access to more through an equity release scheme.
Mike Nickolay, Stilton, Cambs. England

We are jointly saving in excess of 10% into personal and company pensions whilst attempting to build up our savings. I have a small portfolio of shares as well as an interest in some commercial property, which hopefully will contribute in retirement. We have obtained State Pension forecasts as these will still be a contributor in retirement. Controlling our debt situation is important with a view to having no external debt in retirement. Understanding what level of income you will need in retirement is also a good starting point. Overall I am optimistic that we will have enough in retirement to maintain our standard of living.
Neil Hills, West Sussex

I took my private pension at age 50, after signing on, having been made redundant. This investment with my employer was the best thing that I ever did. Although I have not worked for sometime, I have secured another job recently on a good salary. The company also has a pension scheme. I am 57 and if possible I will work until I am 70. When I joined my previous employer at the age of 27 I did so because there was a pension scheme! I will only get a percentage of my State Pension but I am not worried about this. Investing in a pension is the best thing that you can do!
David Waite, Nottingham

Being a Dutchman who works in London I expect to move between countries and companies several times during the course of my career. Therefore, I did not wish to tie myself into company pension schemes with getout clauses and lose money when I tranfer to a different scheme. I also do not really trust the company schemes after hearing so many stories over the last few years. We are investing our money in a private offshore pension scheme. No transfer or tie-in clauses, completely tax-free, confidential and I have full control over the funds or areas that we invest in. If I lose out in the end, then I only have myself to blame.
Martijn Moerbeek, London, UK

David Butland has probably done very well in the past with his investments but nobody should be under the illusion that an investment of 10% of their income will provide them with anything like a comfortable retirement now. Investing 10% of your income for the next 40 years would probably provide a pension pot of, maybe, £500,000 - this may sound a lot but that would buy an annuity (index linked for you and your wife) of £25,000. This also may sound a lot but taking inflation into account this sum will buy, in 40 years time, what £9,000 buys today, and that's with savings of half a million. Once people realise the amounts involved in funding their own pensions, then we might get a reality check by the government.
tim, croydon UK

It's all very well being told we have to save more, but unfortunately a great many of us earn barely enough to survive now, let alone put money aside to survive after retirement. I heartily wish I had enough each month to save a chunk of my wages for later on, but it's just not possible. What disgusts me, is that we are being made to pay twice: once through compulsory NI contributions supposedly to fund said retirement, but which we will never see again (as there won't be enough to go around), and then into private funds that come from our disposable income (if we have any). Many people like me will never see any benefit from the first, but can't afford to pay into the second. I have truly come to believe that NI is just another tax to line the government's pockets. It certainly doesn't benefit the people who see their precious wages disappearing into it every month.
S Jones, UK

I do not see the benefit of having a pension that can be exploited by greedy insurance company directors. I am now 34 and have invested in 2 properties and will be investing on average into 1 house/business every two years. That is my pension.
Khalid, UK

I have recently bought a flat as a first time buyer, I have a company pension and am investing in shares. When I marry my fiancee we'll buy a house based on her salary as the main income and I'll rent my flat out and when I come to retire I shall either sell the flat or use the rent as an income.
James Turner, Sheffield