A Thought About Pensions
Are the Unions attacking the wrong target in the Government over pensions?
If I look at my pension, it’s not as big as it could be and that is probably because the advice I’ve received over the years about it could have been much better in places. It has been managed by three or four providers, a couple of whom have been taken over. It is now being managed by a friend, who works for a respected institution, but getting it there involved large amounts of paperwork and slowness on the part of the previous company.
But I’ve been lucky compared to some of my friends, who have suffered downright incompetence, or were unlucky enough to have chosen the likes of Equitable Life.
So is the problems with paltry pensions, not so much the rules, but the management by the companies and individuals involved? I know this doesn’t apply to pensions provided by the government, but poor private pensions, must mean that there is pressure for everybody to come in line.
Remember too, that when pensions came in, it was expected that those receiving them would only live a couple of years at most. Now most live a lot longer.
But if you think the problems are bad here, then just look at some European companies, where pensions are funded totally from taxation.
Would You Employ an Accountant Who Couldn’t Add Up?
One of the stories today is that the Nulabor government cocked up the rate of inflation, which meant that pensioners were underpaid to the collective tune of £80billion.
There is no excuse and mistakes like this by governments of all colours and competences are woven into the rich tapestry of history. Years ago, a colleague left to work for the Department of Trade and calculate the trade statistics. A few years later there was a serious mistake. I don’t think it was his fault, but because he worked there, we spotted it and had a bit of fun at his expense.
Whoever said, that there are lies, “damned lies and statistics” was right. Latest thinking says it was Charles Wentworth Dilke and not Mark Twain or Benjamin Disraeli. Although the phrase should probably be “lies, damned lies and government statistics”
Annuity Rules to be Scrapped
You save all your life and create an adequate pension pot and then at 75, you have to turn it into an annuity, ehich in many cases would be like using twenty pound notes to keep warm in winter. But now the government has stated that it will abolish this rule according to the BBC.
The government has outlined its plans to scrap the long-standing compulsory deadline for people buying an annuity.
Present rules state that those with a personal or company money purchase pension must buy an annuity once they hit the age of 75.
In the Budget, the government changed this age from 75 to 77, and now it has outlined plans to abolish the deadline.
I’ll believe it when and if I get to 80. Remember that this change will mean all those commissions and charges that insurance companies and pension funds will lose. They’ll try all they can to stop the rule changes. After all government needs their services like the rest of us.
The Anonymous Widower 