Partners’ Pensions - Planning For A Comfortable Retirement

Many professional firms make provisions for their partners' retirement, but it's important for individuals to consider whether this will provide them with a sufficient income, says Dani Glover.

Rarely a day goes by when pensions are not in the news. Yet many people pay little attention to their own financial affairs, especially with regard to saving for retirement. When asked why, they often say that pensions have become too complicated or that pension performance has been poor, so why bother? Even when they do plan for the future, left to their own devices, too few people set aside enough funds for their retirement.

Whose responsibility?

Interestingly, Smith & Williamson's Annual Survey of Law Firms 2011 shows that more and more professional firms are making provisions for their partners' retirement. For example, a firm might withhold a percentage of a partner's profit share to invest in a pension of the partner's choice. This enables partners to plan for a