It’s all over the BBC!:

 

http://news.bbc.co.uk/1/hi/business/7416524.stm

“In April, the latest chapter of … Pension Trends said pensioner couples received on average £2,115 a year from private pensions. In fact, the real figure for couples is more than four times larger, at between £9,000 and £10,000 a year. “

The reason is straightforward i.e. 52 weeks in the year, not 12. Hence the ratio 4+ to one.

But should we not ban “on average” figures? The interesting thing is dispersion and variation. (Not sure what a “private pension” is – does it include all non-state pensions, or all non-occupational pensions?)

Although we all want a big one, pensions seem designed to perpetuate inequality into old age. (except that women recoup some of the gender inequalities by getting pensions earlier and living longer). If these two factors worked against women rather than against men, it would have been a big political issue a long time ago.

BTW one thing I’ve found recently is that you can buy stakeholder pensions for your kids. This has quite a lot of advantages – 25% tax enhancement; not counted for Inheritance tax; they can’t spend it till 50; also it is not counted on some means tests so if you invest enough of your income into pensions your income becomes extremely low.

Happy pension-hunting!

 

JOHN BIBBY
All statements are on behalf of aa42.com Limited, a company wholly owned by John Bibby and Shirley Bibby. See www.aa42.com/mathemagic and www.mathemagic.org