10 February 2012

When did you stop believing in the Pension Fairy?

... or perhaps you still do! I was inspired by Red Blog to ask the question, since so many people act as if she exists, and don't look after themselves.

There's some great research on that blog, too, which demonstrates how we all have to work so much harder than twenty or more years ago to get a reasonable pension income. In 1980 you needed a pension pot equivalent to 1.8 times your salary to get two thirds of your salary in a pension. If you retired in 2010 you needed a pot 9.3 times your salary!

(We are talking defined contribution / money purchase pensions here, rather than defined benefit / final salary. If you have one of the latter, the pension fairy still exists for you!)

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