| There
are two main types of pensions. A State Pension (run by the Government)
and a Private Pension.
When we work, part
of our salary goes towards National Insurance, and that makes up the State
Pension.
On top of that, you
can also invest in a Private Pension. There are Occupational Pensions,
which are offered by employers to their employees, and Personal Pensions
which are open to anyone employed or self-employed.
Is
it important to have one?
It is important to ensure that you have a good pension so you can have
a happy and comfortable retirement - we all need money to live well. But
some people do not believe that a pension is the best, or safest, way
of securing money for your future.
So,
why is there a crisis?
First of all, as the Stock Market has not performed well recently, the
pension companies have also not performed well. Over the past 10 years,
25% of pension companies have actually lost money - this means that you
would not get as much money as you were expecting on your retirement.
To add to that, we
are all living longer. This means our pensions have to go further... Some
people also think that we are also spending too much and not saving enough
for our retirement!
What
is being done?
The Government has set up a commission to review the situation and see
what can be done to solve this. The report will be out this time next
year, and when that happens OINK! will be there to report on it for you.
By
Alain Benaim
Investment Banker
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