Tuesday, Dec 16, 2008
Should we blame the pensions ?
ITN: Pension Apprehension
Pension budgeting is tricky. Here, public service pensions may be miscalculated for some people. It seems to me that the public's uncertainty about their pension future motivated them to invest in property and to accept that a property of their own should have a high asset value. And it seems to me that the government, faced with a pensions crisis, wanted house prices to succeed as investments too. We talk about tracking inflation, etc.. Perhaps the overriding motive of policy is a perceived pensions deficit. [my first article post - look at me all back of the bus]
Posted by mdmick @ 11:56 AM (348 views) Add Comment
2 Comments
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1. will said...
A house as a pension is a rediculous idea. When house prices become so high as now, who are you going to sell it to? Houses become illiquid, as many are now finding.
2. paul said...
Yes, using house prices as a pension supplement is wrong headed. At best it is a primitive transfer of wealth from the young to the old, at worst it is a zero-sum game.
If this kind of blunder was made in the private sector, the culprits would be arrested for mismanagement. Should we expect some arrests anytime soon ..?