Pensions Podcast - what to do now, what to do in 2012?
With most adults in the UK making inadequate saving for retirement, it's not surprising that our politicians are passing new laws to force employers to pay into our pensions.
I know that legislation moves slowly, but pensions legislation moves more slowly than most, in fact, watching paint dry is a fast moving sport compared to watching pensions legislation unfold.
But the nuts and bolts of it are that if your employer doesn't currently offer you a pension contribution, then in 2012 they will have to.
Great news if that's you, but what about the thousands of employers that already offer their staff pensions?
Are you one of the three million people who could join your employer's pension scheme, but haven't bothered?
Then it's time to wake up and smell the coffee now - you don't have to wait until 2012.
Please don't hide behind the alleged complexity of pensions. The simple facts of pensions are just that, simple!
If you are in reasonable health, you can expect to enjoy about 25 years of retirement. Saving up for that will be expensive, but the cost will be bearable if you and your employer go Dutch and share the burden 50/50.
You might be tempted to delay saving for retirement, and hope to play catch up later. Perhaps your circumstances will allow you to save more in the future - you will know that better than me.
But what I do know, is that your employer will not play catch up with you. If employer pension contributions are on offer now, then bank them now. Your employer won't offer higher contributions later because you didn't accept the earlier ones!
If you have the opportunity to join your employer's pension scheme, my mantra is simple. "Use it or lose it". You will probably have to pay a contribution yourself to join the scheme, but the employer contribution will typically double your money. Take as much pension contribution as your employer is offering now, fill your boots, and later in life you'll be truly glad you did.
Adrian Boulding 8th March 2007