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Unbalanced pension equation

I had to write to congratulate Ian Lowes for his article in Money Marketing (February 10). I agree 100 per cent with his response to the contracting-out issue. I have been making similar remarks to clients for many years.

As I deal with a number of contracted-in money-purchase schemes, I frequently have conversations with young people in particular about the contracting-out option using an appropriate personal pension.

It is rare that I come across anyone who has any confidence at all that they will eventually benefit from something from the state on retirement.

Indeed, where their potential state pension age (even if it does not change from the present 65 years) is some-where towards the middle of this century, they accept that as there will be seven, eight, nine or even 10 different Governments between now and then, they can place no reliance on the present concepts and calculation basis being maintained.

I, on the other hand,am within six years of reaching state pension age, so I doubt whether the Government has the time to move it or swindle me.

If the whole concept is a comparison between what benefit may be derived from contracting in compared with that which may be derived from contracting out, if you put a big zero on one side of the equation, there is little contest.

Mel Boustead Barbican Independent Financial Advisors

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