Downturn Heightens Pension Crisis

[interestrateripoff]

http://www.telegraph.co.uk/finance/personalfinance/pensions/8747946/Downturn-heightens-pension-crisis.html

More than a million people pulled out of making personal pension contributions due to a squeeze on household finances, according to the Office of National Statistics, wiping billions from pension pots.

The ONS also raised concerns that a generation of pensioners would not have enough money in their old age because of the demise of gold-plated final salary schemes.

The figures led to warnings that Britons were falling into a “vicious spiral” of reducing their savings when the need to prepare for retirement was growing.

In its Pension Trends report, the ONS said that many people who had been making regular contributions had simply stopped paying money into their scheme as a result of the recession.

Rising inflation, pay freezes and high utility bills have eroded disposable household incomes, meaning that people have had to prioritise what they spend their money on, he said.

Proles you will work until dead, pensions are a luxury now that the vast majority will never be able to afford.

If you can't pay the bills now, your not going to be too worried over the future.

[The Spaniard]

I wonder what the aggregate of pension contributions plus other long term savings for retirement, e.g. S&S ISA contributions, NS&I index-linked certs etc.(?)

Maybe there's a swing towards hands-on management of our own retirement funds rather than support for the bloated, fee-hungry financial services 'industry'.

Just a thought.

[Terribad]

I'm one of these people in the stats.

Spent this year's extra money on a bicycle, which is already in profit, and probably extended my healthy life expectancy considerably.

[VeryMeanReversion]

I stopped paying into mine as a dash for cash before the child benefit changes come in.

After that, its back to everything in the 40% band gets salary sacrificed.

[crouch]

I'm one of these people in the stats.

Spent this year's extra money on a bicycle, which is already in profit, and probably extended my healthy life expectancy considerably.

Hmm, that could mean you'll live longer which means you should save more because you'll need more. On reflection, perhaps you shouldn't have bought a bike.

[OnlyMe]

More effectgs frm central bank meddling with rates, inflation, costs of living leading to not just malinvestment but inability to save for pensions - way to go.

Meanwhile they run their own boiler room front running pension plan, setting monetary policy to suit. Nothing but a glorified hedge fund with a control of the economic levers to produce the desired outcome (for themselves, their banking mates and their government sponsors).

[fluffy666]

I stopped paying into mine as a dash for cash before the child benefit changes come in.

After that, its back to everything in the 40% band gets salary sacrificed.

I wouldn't be surprised if the CB changes are reversed at some point. It is, after all, a policy that preferentially targets swing voters..