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Eamonn Butler, On Pensions, Daily Politics

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Pensions are a ponzi scheme, we should be frightened, there's nowhere enough savings...

Good discussion NOW

The reason for the last decades poor stock market performance is also included in this.

Public sector scheme is a ponzi, as are most final salary schemes. And for Money purchase, rather than go to productive activities, cash is being skimmed off by the bankers in commissions.

The whole banking industry needs to be put on trial, with executions for treason to follow.

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Yep, any one putting money into pensions now is a total mug. Starting next year the conservatives are going to co-opt the remaining 11 million UK residents working in the private sector, who do not have a private pension into an auto enrolment, by making all employers liable by law to enrol employees in a private pension scheme (not sure if the bill is still to be passed or has passed yet).

The benefits of this are two-fold. Firstly it keeps the private pension ponzi scheme running a little bit longer by injecting some fresh blood, whose money can be siphoned off in fees to pension fund managers and payments to old people to enjoy cruises and new tellies. Secondly, UK Private pension funds are obligated to hold a significant proportion (don't have the actual figure I'm afraid) of their fund in UK gilts, not to mention the rest is generally in shares and bonds of other western economies, so it helps keep the whole ponzi debt-based money system rolling that little bit longer.

The costs are two-fold. Firstly, all 'investors' will never see more than pennies on the pound of their money again. It's more admin and financial overhead for businesses that are already under pressure.

Apparently people have the option to opt out of the scheme, but it is estimated by the government that at least 40% will willingly go along with it and march to their financial deaths under their own steam. No worse than saving any excess income in a bank I suppose, will amount to the same difference once this has all played out.

Edited by General Congreve
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Pensions are a ponzi scheme, we should be frightened, there's nowhere enough savings...

Good discussion NOW

Yes, the current set up is not sustainable.

The honest thing to do is admit it, and then change it to make it sustainable, even if that hurts people. That means,

1 ) Raising retirement age so that only a certain percentage of the population can be retired.

2 ) Closing all defined benefit private pension schemes, and distributing the monies of the said schemes equally amongst all scheme members. Those retired dont get first dibs.

3 ) Close public sector pension schemes. Reduce benefits to those retired and to those working who have accrued benefits.

4 ) Remove all tax breaks for saving into pensions.

5 ) End SMI.

6 ) Get rid of all non-pension benefits for the elderly, like free bus passes and free tv licences.

The above measures are necessary if we are going to have a society that only makes obligations that can be afforded. At the moment they cannot be afforded, and their will be trouble when the cash flow to support all of this dries up. Better to take it on the chin now.

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