Yes, you might go under the Number 9 bus next week, but the odds are that you will not and that you will live longer than your parents did. And at some future point you will either not want to, or not be able to, work in the same way you do now. At that point you will need additional income. You should put some money aside now for that eventuality. Ideally you are one of the lucky ones who can still look forward to a substantial pension from their employers. The problem is that this will not be the case for most people. So you will need to set up your own pension, or some workable alternative investment.
A pension is a useful means of long term savings because it benefits from tax relief from the Government (a taxpayer’s £1.00 put into a pension gets 25p added immediately by the Government – and a higher rate taxpayer benefits even more). Since you cannot access the benefit until you are at least 55 years of age, it also means that you cannot go out and spend it before then.
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