Friday, Sep 15, 2006

Pensioners in Debt: No plans to pay it back ever - shocker!!!Oh how the deck of cards......

BBC News: Debt culture 'seduces' pensioners

One in four pensioners are borrowing money without any plan to pay it back.
In addition, one in seven of the 2,000 pensioners surveyed said they would consider equity release to clear off credit card and loan debt.

Posted by nearly30 @ 12:14 PM (530 views)
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4 Comments

1. nearly30 said...

Ever decreasing circles???

Bare this in mind: "Pensioners / Pensions: 1.4 million pensioners (14% of the UKs pensioner population) live on an income of 5,000 or less each year. After council tax, water and electricity bills, this leaves only 3,092 per annum which is equivalent to 59.46 each week or 8.49 a day. More than 38 per cent (3.6 million people) get by on 10,000 or less, and over half of the British pensioner population live on 15,000 or less each year."

Friday, September 15, 2006 02:47PM Report Comment
 

2. Boarder said...

Nearly30,

That's the welfare state effect. When you punish savers, you get less savings.

Friday, September 15, 2006 04:22PM Report Comment
 

3. indiablue19 said...

Boarder....
And it's not only that savers are "punished," but that the asinine inflation figures that are admitted to by the government don't reflect anything close to reality. You may save a substantial proportion of earnings for retirement but when utilities, insurance and taxes [at the least] are rising many times faster than inflationary allowances on pensions then retired people are facing costs well beyond what they can manage or indeed ever anticipated. Our council tax for a modest flat is over 2,700 pounds a year. Many pensioners live in this area. When they bought these places undoubtedly they were considered an average home investment. Now they are supposedly upmarket because trends have changed. They aren't realizing any benefit at all from this illusionary increase in their home value. They only get socked with additional tax by the Council. And I can imagine that many people here live on 15,000 pounds or less and at the time they planned for retirement thought this would be a more than reasonable income.

Saturday, September 16, 2006 12:14AM Report Comment
 

4. Retired Banker said...

As I have previously stated, if you cannot make very adequate provisions for your retirement, then don't
bother. The welfare state will then have to pick up the tab. If you take the trouble to read the fat booklet
issued by the government, it is illuminating how many benefits the "impoverished" become entitled to.
Transfer the villa in Majorca into your childrens' names, and let them receive the rental income for you.
Do the same with any savings above the benefit threshold level. Buy gold coins and keep them in a
deed-box in the bank. Have a "moonlight" job for cash in the hand.
I could write a book about some of the things that I have seen during my time in banking. Haven't you
ever wondered how many people without visible means of support manage to live so well?.

Some years ago I remember reading a newspaper article comparing the living standards of two pensioner
couples who happened to live next door to each other. The couple who had a small occupational
pension were worse off financially than the other couple who were solely dependent on the state pension,
and therefore qualified for many free benefits.

Saturday, September 16, 2006 11:11AM Report Comment
 

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