As far as crazy questions go this is probably one of the best you have ever seen! Why on earth would you want to think about your pension and your retirement as soon as you have started work? The really crazy thing is that you should be thinking about your retirement the minute that you have any surplus cash, and funds which you can put away.

While for many of us currently in employment, our retirement date has been further pushed back to 65 years of age, it is never too soon to start saving for your pension, and making use of all of the latest tax incentives you can take.  While the retired population of today have a state pension coming in, even though on many occasions it is being reduced year on year in real terms, this is a “luxury” which many of us currently in employment will not have. 

The social services system in the UK is under great strain, and while there are plans afoot to transfer funding to the people who actually need it, there is no doubt that as the population grows both naturally and through immigration, the benefits we take for granted today may not be their tomorrow.  There is also the double whammy of an ever ageing population, which will take more and more out of the state pension and benefits pot.

The UK government have for some time been very vocal in their support of private and company pensions schemes, offering  a whole range of tax incentives for those looking to move away from the state system.  While this is may seem like a give away, it is really an investment into the future, and a way in which they can try to take some of the pressure off the state system. 

However, the governments plans to encourage private and company pensions are in disarray because of :-

· a lack of protection for many company schemes.
· increasing tax revenues from pension investment income.
 
As they say, on one hand they giveth you and on the other they taketh…..