By David Field -


According to new research released today by JP Morgan, only one in seven of us can expect to have a financially comfortable retirement with the way things are going at the moment. People are just not saving for their old age, preferring to spend what they have while they're still young.

And while that's all very well and good, you've really got to remember that one day, you too will be old, and that extra round that you bought in the pub last night, but didn't really need, may come back to haunt you when you're struggling to pay your gas bill.

So if you can afford to set some money aside in your youth, the advice coming from all angles is that you probably should. At the very least, you can probably rely on your state pension, but for a lot of people who might actually want to enjoy themselves once they finish working this may not be enough. Fortunately, there are plenty of options available to the enthusiastic saver who wants to put a bit extra towards old age.

First, there is that old favourite: the company pension. The final salary scheme used to be all the range, when employers would reward your years of hard service with a pension based on how much you end up earning. However, these are getting less popular with companies at the moment, who are finding the schemes a bit on the expensive side.

The alternative that many have gone for is the money purchase scheme, which can still offer you a pretty good deal. Both you and your employer pay regular contributions into a pension fund, and this is then invested for you. When you decide to retire, you will hopefully have a fund large enough give you a bit of extra pensioner spending power.

If you're self employed or your company doesn't offer a pension scheme there are still options for you though. If you still want to save some extra funds, you could set up a personal pension with a bank, which works in much the same way. You make regular contributions, and they invest your money for you. This does of course mean that, to a degree, you're at the mercy of the stock markets and the investment talents of whoever it is that's investing your fund.

But if you fancy yourself as a bit more of a wheeler-dealer and want to be in control of how you invest your money, then maybe a self-invested pension plan (Sipp) is the thing for you. It's basically the same as a personal pension, except that you get to take control of your money and make the investment decisions yourself.

But whatever option you take, it seems unlikely that you're ever going to regret putting aside a little bit of income for your old age.

Find the latest saving account offers from UK Net Guide.