Saving for Retirement

Aegon published its latest research into the savings market recently (entitled Effective Incentives for Savings)and the report reveals a lot of the complex issues about why people generally don't save enough for their older age. Apart from the general point that most/many financial services institutions are not trusted it reveals that there is a lot of negativity about pensions because they appear complex and the term "pensioner" is old fashioned and presumably conjures up a fairly stereotypical image in line with the "deficit" model and view of ageing.

While the report is really targeting the policy makers and suggests action that could be taken by government to improve the position, it clearly reveals consumer behaviour, not least that some research participants regretted leaving things too late with a preference for lifestyle today over lifestyle tomorrow.

A spokesman from the seemingly more lightweight piece of research from the Lloyds Group about new year resolutions,also stated "for many of us, saving is a bit like going to the gym, we know we should do it but we keep on putting it off".

It seems that one of the points in the Aegon's summary to increase the "focus on encouraging employers to engage with pension provision and maintain valuable employer contributions" is therefore well placed. Another aspect is that the cost to the employer of these incentives can be measured and countered in terms of improved competitive position through increased employee retention, enhanced reputation and improved social impact by their ex-employees having more income/better lives in their older age.

One of the Positives of Ageing

This is taken from page 86 of Haruki Murakami's book entitled "what I talk about when I talk about running."

" My muscles can be as stubborn as -or more stubborn than-I am. They remember things and endure, and to some extent they improve. But they never compromise.They don't give up. This is my body, with all its limits and quirks. Just as with my face, even if I don't like it it's the only one I get, so I've got to make do. As I've grown older, I've naturally come to terms with this. You open the fridge and can make a nice- actually even a pretty smart- meal with the leftovers. All that's left is an apple, an onion,cheese and eggs, but you don't complain. You make do with what you have. As you age you learn even to be happy with what you have. That's one of the few good points of growing old".