It is likely that if you are under 35, retirement is something so far away that you don\u2019t even think about it. However, you should. Since the public system is designed so that current contributors support the pensions of existing pensioners, besides, everything indicates that a simple effect of demography will worsen this ratio.<\/p>\n\n\n\n
A pension scheme is a type of savings and investment product<\/a> that has recently been targeted by many savers. The minimum rise in public pensions by the government and its sustainability in the future is questionable. That has currently made pension schemes to be in a position as one of the most common savings alternatives. <\/p>\n\n\n\n However, these products are complex and, being an investment product, could lead to a risk to our savings. For this reason, we should not hire them without knowing their operation.<\/p>\n\n\n\n Technical measures have already been taken to reform the public pension system. However, these reforms have not yet complete. We cannot see the effects of the change until the end of 2019, when the sustainability factor enters into force, and especially after 2027 when its implementation period ends.<\/p>\n\n\n\n The sustainability factor combines the life expectancy of the pensioner and the situation of the public money boxes to calculate pensions, which is something that will cause reductions in the amounts of public pensions that will be charged by the next generations when they retire.<\/p>\n\n\n\n After analysing the economic problem of pensions<\/a> in the UK, the question we must ask ourselves is: has the time come to be a pensioner and save to complete the retirement?<\/p>\n\n\n\n