FOOL'S EYE VIEW
Saving For Retirement Is A Must

By Jane Mack (TMFJane)
October 1, 2002

Remember that BBC sitcom called 2 Point 4 Children? It was quite funny as I recall but if they did a re-make of it these days, the title of it would have to change. Not sure what to but somehow 1 Point 64 Children doesn't quite have the same ring about it, does it?

We've all been hearing for a while now about how fewer and fewer children are being born these days but hopefully the alarm bells are ringing a little louder in some ears today with the publication of the initial results of the 2001 Census.

First results indicate that people aged 60 and over now make up a larger part of the population than children under 16 (21 per cent compared to 20 per cent).

Think about that for a minute.

And then think about the report earlier this month from the Institute of Public Policy Research which indicated that a third of people in the UK have no savings whatsoever and, of those who are saving, many aren't saving enough. Perhaps everyone's assuming that a fairy godmother is going to surface at retirement time to wave a magic wand to ward off the impending poverty.

The Census also shows that the number of people living beyond 85 has increased too - by 500%(!) - in the last fifty years to 1.1 million. I wonder how many of them are living in comparatively comfortable retirement because they made sure they put enough by when they were younger. My grandparents, who are in their late eighties, are but, if you have them, are yours?

Women, in particular, should take note of the Census results because there's a screamingly loud wake-up call in there for them too. The statistics are significant. Overall there are just over 1.6 million more women than men in the UK, many of them in the 20-34 age range. As the Daily Telegraph points out today, this seems to confirm the so-called "Bridget Jones" phenomenon of women struggling to find husbands. I'm not saying all women need or necessarily want to find husbands but if any are relying on it for their financial security, then perhaps they ought to do a bit of re-thinking – just in case.

At any rate, only last week TMFJimmyC wrote about the so-called 'pensions timebomb' and its implications. The phrase seems to have become a media favourite these days – perhaps because it's the easiest and most apt way to describe the rumbling truck that is steadily heading towards many of us.

As he pointed out the Government could make us all work longer before we can claim our State Pension – the IPPR even suggested a retirement age of 72-75. That's if there's a State Pension around by the time we reach our seventies, of course. If you're happy to do that, then fine. Personally, I'd rather spend it whooping it up in the Caribbean in between tending my tomato plants and putting my feet up to re-read all my Winnie the Pooh books.

Much as love my job, I'm not sure I can see myself doing it right up until I'm 75. At the very least I want the choice to stop when I want to and not when the Government tells me I can. And I certainly don't want to live a hand-to-mouth existence when I do stop. It's why my husband and I have regular savings and pension plans into which we're whacking as much as possible. It's why we're overpaying the mortgage every month so we can remove that expense from our outgoings as soon as possible. It's why we don't mind about not having things like a wide-screen TV, DVD player or a nicer car.

I hope that doesn't sound smug because it's not meant to be. It's just that there are one or two members of my family who just don't seem to get it yet and I'm not quite sure how to get through to them.

Has it got through to you?

> More on Savings and Pensions

> The New Fool Book - A Girl's Best Friend is her Money