I am in my 50's. I earn quite a small income from my own business, and have a too-small pension fund and a similar amount in savings. To add to the pension fund or savings means my wife and I go without luxuries.
With all the means-tested benefits the Government hands out, it seems to me that it may be better to have no savings at all than a modest amount. We could be going without in order to save for a pension which would be much the same as we would receive with Government top-ups if we spent our money instead of saving.
I realise of course that Government pension benefits can change over time, but then so can the returns from one's private pension. As an increasing number of voters are likely to be victims of the "pensions crisis", it seems unlikely to me that any future government with a desire to get elected would cut back on pension benefits.
The problem is this. If you are retired, there are many organizations (e.g. Age Concern) who will advise you on what you are entitled to. If you are still working, the only source of advice is from people who have a vested interest in selling pensions and investments. It is impossible to trust such people. Do a bit of searching, and you will see websites from financial advisors where the small amount of the basic state pension is used as something into scare you into investing in your own pension fund. Nowhere do they mention that your income as a pensioner will be topped up by various benefits to help pay council tax, etc. You might be better off with no pension fund at all than a small one, but they aren't going to tell you that, are they?
My wife has never earned enough to pay any tax or N.I. contributions. Will she qualify for any state retirement benefits, or will we be entirely dependent on my own pension income and savings?
Where, if anywhere, can we obtain impartial advice on what is best to do in this situation?