A stark headline on todays City AM (daily business free-sheet). A study by Policy Exchange - a government funded group gathering information for a better society - reckons that saving for a pension should be made compulsory. Today, average savers have just £36,800 in their own pension pot, well below the £240,000 target for the minimum required for a decent pension in retirement.
I fully support any move for enhancing pension pots for retirement but, rather than just pumping money into mis-managed funds or low-interest-rate bonds, my opinion is that more should be done to educate the population into managing their money throughout life.
This should start at school with lessons demonstrating principles such as compound interest, and pound-cost-averaging. The introduction of SIPP's was a significant step in removing the blinds from the "dark art" of pension funds. Now, the people of Britain need to be educated to know how to get the best from them.
I have set myself a Pension Fund target of £640,000 to be in my SIPP on my 65th birthday (8th November 2024). It may seem an impossible task from my current value of approximately £74,000 but you have to set yourself a goal.
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