Are pensions 'finished'? Yes, because ISAs are better (CityWire)

CPS Research Fellow Michael Johnson was interviewed on the current state of pensions in CityWire on Friday 22nd February 2013.

To view the full article, please visit the CityWire website

“Forget pensions, adopt the ‘negadebt’ school of saving and keep topping up your ISA (individual savings account) if you want to have a decent retirement. These are the recommendations of pensions expert Michael Johnson, who believes ‘pensions are finished’.

Johnson practices what he preaches. Although he has a ‘very small’ self-invested personal pension (Sipp) he said ‘all of my wealth, apart from my house, is in ISAs’.

However, he is also entitled to a generous defined benefit (DB) pension from his previous life in investment banking. He is now a research fellow at the Centre for Policy Studies, the right wing think tank co-founded by Margaret Thatcher in the 1970s before she became prime minister.

This penchant for ISA saving has led for Johnson (pictured) to call for a combined pension and ISA allowance of between £30,000 and £40,000 a year. Each year savers could decide where to save and which tax break to receive.”

To view the full article, please visit the CityWire website

Date Added: Friday 22nd February 2013