Brendan Keenan: Want to avoid the Big Drop? Save
The pensions system needs to change -- it is not the taxpayer's role to keep rich retirees at the level of luxury to which they have become accustomed
THERE used to be an advertisement for some pension product which played upon people's fears. "Avoid the Big Drop" was its slogan, amid pictures of the contented pensioners golfing and sailing among some sunkissed isles.
That is the dream. No doubt the product was bought by people who have a holiday like that once a year, and felt they would like to do more of it when they retired. They are likely to be sorely disappointed when the time comes.
Achieving that kind of lifestyle in retirement is an expensive business -- more expensive than the average person can afford -- or even the above-average. It would require saving more than a quarter of income for most of a working life, which is usually not feasible when families are small and bills correspondingly large.