It turns out, to my surprise, that next month I will be the proud recipient of a 2% employer contribution pension scheme.

I will of course allow myself to be opted into it automatically because that 2% is free money*, but I just don’t really believe in pensions. It seems to me that for a pension system to be viable, it needs three things to be true:

1. There must be safe investments that yield decent results year on year
2. The general cost of living must be low compared to the average wage
3. Employers must offer generous contributions.

None of these three things is currently true for the average person. Older people remember when these things were true and believe that the market will rectify itself, but I think younger people are more of the opinion they’ll believe it when it happens.


*Assuming that it doesn’t come out of my annual pay rise, which I’ll find out also next month…


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