Monday, March 3, 2008

Britain’s pensions crisis is “worse than originally feared.”

Three in four private sector workers facing poverty in retirement

Many private sector workers face poverty when they retire. Nearly three-quarters of private sector workers are facing poverty in retirement, a report has warned. They do not have a company pension or any other type of pension savings apart the state pension, which is only £87.30 a week. The report, from the Policy Exchange think-tank, says the scale of Britain's pensions crisis is "worse than originally feared."

Posted by jack c @ 10:15 AM (1342 views)
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13 thoughts on “Britain’s pensions crisis is “worse than originally feared.”

  • And the reason its worse is because the banks have ransacked pension funds to rebuild their books because they bought dodgy structured investment vehicles.

    Remember that when you see banks saying they are “relatively unscathed” from the credit crunch, and posting profits.

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  • whiteknight says:

    I do not think this is talking about that at the moment.

    This is just talking about the fact that most people are in debt (spend now – live for today culture) – let alone have savings and pensions to support them for the probable 30 years they have to live when they retire.

    We are not even into the problems that actual pension schemes themselves might have.

    If vaguely accurate then this is beyond frightening.

    For that matter have imagine having an inflation linked pension; I hope that wouldn’t be linked ot the official inflation figure of the day – particularly if it excluded food and energy costs. I think they might have other metrics for these things though?

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  • japanese uncle says:

    In the last decade, UK consumers have spent in advance what were supposed to spend for the coming two decades.

    When the money is gone it’s gone. They are now literally a spent force. Pawnshops will be a thriving industry along with eBay.

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  • shipbuilder says:

    This is another issue to be solved with inflation.
    I also expect to see the retirement age raised progressively over the next few decades – the government and business know that we are a defeated nation in terms of the will for public protest or mass resistance on almost any issue now.
    The media will manage the issue by the gradual stigmatisation of the non-working over 65s – not supporting the economy, scroungers, the usual sort of thing.
    Western governments learned from the cold war – create an enemy and a dependancy on money and totalitarianism is unnecessary – a nation will walk willingly into the erosion of freedoms and transfer of power to the elite via indebtedness and corporate hegemony.

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  • Don’t assume all government-employed people are well off pension-wise.
    I lost 16 years of employer contributions by working as a hospital pharmacist and leaving twice in between (maternity/going abroad) . Each time I left, the NHS returned the contributions I had paid into my bank account and took theirs back. They paid up my SERPS but that was probably a complete waste of it (I have no idea how much that will give me and can’t get a forecast for a while).
    Cannot believe it used to be legal for the NHS to do that (i think the rule was that you forfeited their contributions if you worked for less than 5 years at a stretch). Any suggestions welcome!
    Luckily I went into private industry afterwards and then became a consultant, but I am having to play catch-up and certainly won’t have the option of retiring early.

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  • whiteknight says:

    Entirely theoretically i have noticed that mass protest is in the digital shift territory of human behaviour.

    People, as a crowd, accept something until they don’t. Rather like the current equity markets state of denial in reverse. Hence its rather hard to predict.

    This is normally because the “resultant” behaviour is the aggregate of a large number of rapidly changing driver variables. Much the same again as the market infact.

    One can be led into believing that they will see nice linear behaviour. When is this ever the case?

    I wonder how confident Louis XVIs men were of the same.

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  • “most people are in debt (spend now – live for today culture) – let alone have savings and pensions ”

    and why would anyone save when the government seem intent on preventing it. You pay tax on your savings interest, but there are many ways to get tax releif on your BTL debt. The government have practically forced this to happen. My savings have been losing value every day thanks to the supply of cheap credit and the low interest rates relative to real inflation. And that’s before you take account of the tax I’ve paid on it!! The government are 100% to blame for this. Do you think it is possible to build gallows sturdy enough to take the weight of fat gordon?

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  • Good point inbreda, this extortion has taken place with the full blessing and collusion of the government, beholden to the interests of a few powerful corporate bankers filling their (and their government supporters’) pockets.

    Lets just underline this, neither Alistair Darling nor Gordon Brown has ever spoken in defence of savers when interest rates have been raised. Yet foolish property speculators deserve a break according to them.

    I repeat, the biggest hits will be taken by the pension groups, because they are the last buttress of wealth. Expect your pension to suffer in line with banks suffering.

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  • sold 2 rent 1 says:

    And all this speculation before a huge stocks secular decline

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  • nopensionnohouse says:

    Well you can add me to that statistic for sure. I have no idea what I’m going to do when I retire. Tell me where to put my pension money and I’ll do it!!!!!!! Where is safe? What is sensible?

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  • Paul,

    _And the reason its worse is because the banks have ransacked pension funds_

    Link please – some sort of evidence probably required for such an assertion.

    By the way, if you believe banks have _bought dodgy structured investment vehicles_ this suggests your understanding of what’s going on is rather limited.

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  • @nopensionnohouse

    “Well you can add me to that statistic for sure. I have no idea what I’m going to do when I retire. Tell me where to put my pension money and I’ll do it!!!!!!! Where is safe? What is sensible?”

    Me too — Good Question. I’ve lost so much from the ’90s and now this. I’m running out of time too,this time around. So will end up with a fraction of my PPP forecast in the ’80s.—– Only one of many,many victims — I’m sure.

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  • The best place, for now, is in precious metals, increasingly valuable commodities and some of the more prudent currencies, I would be _very_ wary of shares! My money is in offshore Gold Bullion, for now, because it is a real money base for money, isn’t taxed and being offshore is relatively safe from state seizure (theft).

    The Government and the Political Class deserve the treatment of traitors, for allowing and making this crisis far worse than it needed to be, and for continuing to deepen the crisis! They need to be ejected so that competent people can control the plummet and assemble economic climbing gear, for a climb out of a very deep economic hole e.g. leave the wasteful, doomed EU, limit money leaving the UK and become self-sufficient in manufacturing, goods, food and energy, sharpish!!!

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