Is it worth saving in a pension?

The pensions crisis means many people face financial uncertainty in retirement. Rebecca Atkinson interviews pensions expert Tom McPhail to get his view on how people can ensure their retirement savings beat the downturn.

Your Comments

This is such a useful and interesting article. It has really helped me, as I have been struggling with pension vs property argument for some time.

Why is it that in Britain we are charged tax as individuals it does matter whether we are married or single, each person has the same responsibility for tax. But as soon as we become pensioners or have to face claiming any benefits if we are married we are suddenly no longer individuals with equal entitlement to benefits and pension. We become a couple again and receive less than we would do as individual single people.

The answer to stay single is a bit late for those of us who have been married for 40 years and have no wish to be single. We have as husband and wife both paid equal amounts of tax and national insurance contributions all out working lives, but now as we reach retirement age we are not entitled to equal pensions as individuals. We are suddenly a married couple with one of us being treated as a dependant.

If my salary as a wife was enough for the government to tax equally throughout my working live, I would like to know why on retirement, or in the event of us every having to claim benefit, I become a dependant of my husband and we are only entitled to one and a half pensions rather than two equal individual pensions. To me the is a very unjust system and an unacceptable way of treating people.

I didnt realise until I read this email that I will not receive A FULL PENSION if I am married, based on paying my full this true?!

Annuity rates are so poor that saving in a pension is worthless to most people. Save into long term high interest bonds instead. YOU get to choose when to use the money, YOU get to pass the money on to your dependents when you die (unlike the capital used to buy an annuity) and the interest rates offered seem about the same as annuity rates. So saty in controlm don't give your money to the pension companies...