Playing percentages

With faith in banks severely shaken by Northern Rock, savers are beginning to see traditional retirement planning as something of a gamble. However, certain guarantees available can offer more confidence for retirees to seek out asset classes that might otherwise have seemed too risky

The second half of 2007 has been characterised by financial uncertainty. Weekly revelations have left markets with an almost constant case of the jitters, and savers' faith in the safest and most basic of financial products, the cash deposit, has been rocked by the debacle at Northern Rock. This backdrop gives those saving for retirement cause for concern: stock-market volatility is a major threat to retirement income. People are starting to think differently about the way they plan for their retirement, as they demand greater certainty about the type of pension they will be able to rely ...