What to do with your money when you retire? It is a question that worries many workers in their late 50s and early 60s as they prepare to forsake the daily commute. And it is a question that fascinates the financial-services industry, which would love to get its hands on people's retirement pots. The question is all the more urgent because pensions as people used to know them are disappearing in the private sector. The traditional defmed-benefit (DB) pension was paid by a company on the basis of an employee's length of service and final salary. Companies are retreating from such promises because of the cost; investment returns have been poor and people are living longer. Instead, staff are being offered defmed-contribution (DC) plans, in which both employers and employees put money into a pot.
展开▼
