Sunday, Mar 29, 2009
Yet another blow for pensions
Guardian: Pensions blow for those soon to retire
Quantitative easing has been "a disaster" for pensions because it has pushed up the price of gilts - so private pensions are about 10% lower. Lucky MP's are on final salary schemes.
Posted by cyril @ 11:22 AM (517 views) Add Comment
4 Comments
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1. it_is_going_with_a_bang said...
Pension pot of £500k? I wish.
2. Dan said...
By the time my Dad retired around 2000, his pension had been robbed of six figures. As a direct result of Gordon Browns 1997 pension raid [Brown STOLE £100Billion from Tax payers pensions in 1997]
Maybe Brown needed the £100Billion, as the European Central Bank have stated that our government Wastes £99BILLION every year.
But as you say, MP's are on final salary schemes, I note thats not mentioned the Guardian.
3. stillthinking said...
Well said. I was surprised as well, a pension pot of 500K!!!!
What a scam on the private sector. So in pension pot terms the value of the final salary pension scheme for the public sector must be 400K, an amount they could never hope to save.
4. drewster said...
A pension pot of £500k isn't that hard to acheive. A simple back-of-the-envelope calculation shows it takes just £3,000 a year over 40 years earning 6% interest per year. I haven't factored in inflation which would probably skew the figures, but it certainly doesn't seem like an impossible sum. Bear in mind that (a) the £3,000 a year comes out of pre-tax income, and (b) until Brown's 1997 pensions raid, interest/dividends were untaxed, so that 6% might easily have been 8%+.