Don't contribute to your pension

It’s popular to see pension contributions, as a safe, risk-free investment. The sensible thing to do.

As a 24-year-old, the wisest of ages - I vehemently disagree.

Reason 1: The moving pension age

The pension age is moving. In the UK, it’s currently 67, but it’s likely to be at least 70 and probably much higher by the time I retire.

Reason 2: Ecological & economic collapse

There is a non-zero risk that the financial institutions that hold my pension will not be around when you retire. The cause could be nuclear, ecological or just good old-fashioned economic collapse. It doesn’t matter which, just note that many of the institutions on which we rely are younger and more fragile than we imagine.

Reason 3: You might die

According to some random Cohort mortality charts I just found on the internet, there is a roughly 10% chance of dying before I’m 70. In which case I will see nothing of my pension.

Reason 5: You could invest in yourself

If you find some way to invest in yourself, right now, it’s probably a much better return than any pension scheme. You could start a business or do some fancy certification.

Reason 6: You could spend it now

What’s the point of life anyway? Go on holiday, eat some nice food go see some loved ones. Have an adventure. You get the idea.

Reason 7: Inflation

The value of money is constantly decreasing. And your grand plan is to put a bunch of it in some box in London, and come back 50 years later? My alternative? Save money for a deposit, so you can spend your retirement growing vegetables and doing little crafts. This way, you won’t need loads of cash to fund your retirement lifestyle.

Maybe I’m an idiot. Maybe I’m a genius. Who knows. But I’m not contributing to my pension.