Somanyqiestions, by paying into your very good occupational NHS pension, you are in fact saving or preparing for retirement. Several hundred pounds from your salary will be going into that every month.
The thing is, some people opt out of pensions or with defined contribution pensions, pay in the minimum of a couple of percent and only have employers who pay the minimum too - their provision will be very small.
Most people’s provision for retirement is via pensions. Some people have some other provision too via ISAs or other investments if perhaps Buy to Let, or other savings, but for most people it’s pensions. If people have looked into what income they need in retirement and their pension contributions will provide that, then they are prepared.
People who aren’t prepared are either those who have never actually looked into what they are likely to need (the Which? Website gives useful info for what income might be needed for a single person or couple for basic, moderate and comfortable retirement) and considered if what they are paying in will provide it, or who have looked into it and are put contributing nearly enough.
This stuff about no-one knows when they will die so they want to enjoy the cash now is foolish head in the sand stuff. Yes, some people die in their 50s, 60s, but the vast majority don’t. Absolutely, we need to live now. We need housing and to help our kids and to enjoy holidays too, but a key expense also needs to be providing for old age. For most of us it will happen, and no-one wants to be poor.
Most people assume they will get a full state pension. But most people don’t know how much that is or that you need 35 years of contributions to to get it - it’s not automatic. Many people, especially women won’t get to the full 35 years. And most people don’t have any idea if what they will need in retirement or what their current pension will provide per year. It’s the equivalent of having zero idea what income you will have next year and just hoping you’ll have a job but not doing anything to make it happen.
Most people don’t have enough income to have absolutely everything they want now and a good, comfortable retirement. Most people have to make some choices, but choices require information. People need to know the consequences for today and the future if putting £300 per month into their pension or £600 per month into their pension, and the consequences of having a new sofa or not having one for today and tomorrow.
This general principle which is quite vague of living for today (whatever that means) and saving a bit for future (with tiny oension contributions or none) is just sleep walking into an old age of poverty.
For some people old age poverty is pretty much unavoidable as their income levels currently are so low. But for lots of people, they will be in old age poverty, when actually it could have been avoided by different choices when they were younger. Even a couple of hours digging around in the internet or accessing pension records or state pension forecast online can give someone the info they need to make informed choices. It’s vital!