Pension Protection
When you choose to invest your savings in a pension scheme, you do not wish to feel that you are putting your money at risk. Unfortunately, the failure of some pension schemes to fulfil the promises they made to members has led to much unease regarding the UK pension system, while high profile cases documenting abuse of pension funds by company bosses have served to undermine public confidence in occupational retirement schemes. Meanwhile, demonstrations calling for a more generous State Pension have highlighted the poverty of UK pensioners.
The ageing population of the UK is also a cause for concern, with analysts predicting that the number of people claiming a pension will increase while the number of people paying National Insurance contributions reduces, resulting in further state pension reductions. There is a lot of bad press on the pension sector, and consumers can hardly avoid the worry 'How secure is my pension?'
There are however a number of measures you can take to protect your pension and protect yourself against financial instability in retirement. Protecting your individual pensions is of paramount importance; the pension schemes to which you belong must be as secure as possible to protect your investment. For more details on reducing pension scheme risk see State Pension Security, Occupational Pension Security and Personal Pension Security.
Relying on one investment to provide you with financial security throughout your retirement may prove short-sighted. Securing a retirement income outside a pension scheme is explored in Other Investment Opportunities, and Earning over age sixty-five.
If you have concerns or complaints regarding your pension scheme provider or the way in which your investment is being handled, see Complaints. Pension Protection and Family deals with protecting your family's right to financial security; to protect your savings against tax even after your death, see Inheritance Tax. If you have concerns about your financial situation, or require help managing your money, see Debt and Bankruptcy and your pension. If you would like to read more about the origin of the UK's 'pension crisis', see Pension Crisis in the UK for more information.
Although there has been a lot of negativity surrounding the pension system, the number of people who have lost their retirement savings remains extremely small. If you have any concerns about your financial future, or the security of your savings, contact the Pensions Advisory Service on 0845 601 2923 or request assistance from an independent financial advisor.
For more information on pension protection, see:
