Millions Rely On Lotto For Pension

Figures released by the National Association of Pension Funds (May 2011) reveal three million employees admit they are relying on winning a lottery jackpot to fund their pension. A further three million are said to be counting on an inheritance to finance their golden years.

However, the slender odds of a lottery win and the sizeable death duty on inheritance mean these millions of people will be in for a nasty shock when faced with the reality of a £102 per week state pension.

“Deeply unnerving” and “completely unrealistic”

Joanne Segars, chief executive of the National Association of Pension Funds, comments: “It’s deeply unnerving that millions of people count a flutter on the lottery as part of their retirement plans. A financially secure old age cannot be left to chance. The only certainty is that many will miss the jackpot and wind up in pensioner poverty.”

Jim Boyd, of pension annuity group Partnership, agrees: “Frankly, this is a bizarre attitude to retirement planning. It’s completely unrealistic. Millions of workers need a reality check.”

However, whilst Boyd advocates “regular saving”, we know that traditional pension annuities can eat up the lion’s share of your hard-earned savings in fees; and traditional bank savings accounts offer paltry returns of around 1.5% - 2%.

A national scandal which ultimately costs us all

A further report from the Department of Work and Pensions suggests many people are trusting in their employers to “act in their best interests” [with pension schemes]. This is as opposed to placing trust in the government or financial services industry.

Graeme Riddoch, director at The Open Market Annuity Service, comments: “Failure to help our retiring workers maximise their retirement incomes is a national scandal, one which ultimately costs us all in terms of lost tax and higher benefit payments.”

David Harvey, director of corporate pensions development at Partnership Assurance, adds: “People will arguably do what they are told, or follow the path of least resistance because they do not know better.”

Protect your future with property!

Is there another way? Yes! Rod’s series of articles, The Growing Pensions Scandal and How To Protect Your Future! addresses these very issues. The articles, serialised in Your Property Network magazine and on the Axis website blog, provide valuable information about the flaws in traditional annuities and how to create a pension from property investment instead.

Start reading The Growing Pensions Scandal online and join Axis (for free) to receive a copy of the full, free report when it is published in summer 2011.

Call Axis today on +44(0)1273 447 300 to find out how we can help you create a pension through smart property investment.

Posted in Finance & Money