I have been getting increasingly skeptical over the last few years about the value of Pensions.
I have a pension and it seems to change very little in value each year despite putting money into it and I am seriously thinking about stopping contributions and developing an alternative plan of some sort (god knows what).
The reason for this is to do with several factors and experiences over the last few years:
My Mothers pension has been reduced to a pittance by recent events, despite putting away a lot of money over the years. Eaten up by fees, instability in the markets and mismanagement she is now looking at a pension of less that £6k per year.
Working for a large pension provider for the second half of last year, it was widely agreed throughout the staff that pensions were the largest ponzy scheme ever devised and by the time we came to get a state pension, there would be nothing.
How long will it be before our government has to do something similar to the Spanish who have now spent over 90% of their pension funds buying up their own bonds in a bid to stave off financial ruin and going cap in hand to the ECB.
We have an aging population and it doesn't look like a trend that is going to reverse
So, should I keep paying into my pension?
How many who have retired consider their pensions to have be a good investment? (and when did you retire, how much did you pay etc...)
Has anyone formulated an alternative plan to a pension and acted upon it?
Does anyone have a good reason to be optimistic about their pension?
Very interested to find out what the collective thinks on this as you have never failed me thus far.