Disappearing pensions

[Jarnold]

If companies like the Equitable Life don't have enough money to pay out pensions, should we keep our cash under the mattress?

[JohnPPotts]

No! Pensions are a much more tax efficient means of saving, and in general provide much better returns (and Equitable Life investors will get something - just not as much as they expected), far better than a bank rate. But even banks provide a small rate of interest, which is better than the 0% you get from your mattress (and is also guaranteed by the government, at least up to a certain level). Sorry if this is a rather financially geeky answer.