The question arises of whose
money is it, it apparently no longer belongs to you; NI contributions are treated
by the State as tax income; there is already a move in hand to do this,
effectively to cancel the National Insurance Act. The single tier pension at or
below welfare level is the first step towards this, All are equal, regardless.
Of course a basic rate of tax at
43% would be extremely popular! I don’t think, particularly with no firm return
of pensions, unemployment benefit, job creation, etc, Why bother to work? The
only ray of hope is the forthcoming general election, it would make a good
platform for defeat.
There is a common attitude with
many pension providers and administrators, who treat contributions as their
money to be played with on the markets, but pass on the losses to members,
which is the basis of defined contribution schemes. Annuities are even worse,
are subject to daily market fluctuations, making it a gamble when you retire.
They were supposed to be tied to
a stable Gilt and Bond base, with the State guaranteeing the outcome, but were
then thrown into the market casino and no longer give good value for money or
reflect the diligent years of saving. They are basically out dated and need
replacing by a group scheme alive and active through work and retirement.
The basic problem is that
pensions are no longer your personal entitlement, earned from many years of
prudent saving, but a largesse to be dispensed unwillingly and begrudgingly, as
from a charitable fund. No care is taken with your money, in fact it is no
longer yours, but belongs to a faceless group or the Exchequer.
If you have the audacity to ask
for a statement, you need to check it like Bank or Credit cards as mistakes are
often made, the rules are changed without consultation or agreement and forward
estimates decrease as retirement approaches, too late to correct.
The State is the worst offender,
both in State and Public Sector pensions, you have no rights and should accept
without question the “benefits” the State provides. The main aim is to reduce
the amount paid out to prop up a failing system, which successive Governments
have mismanaged and abused.
Careful plans, made over 40
years, to retire at a given date with an
adequate amount to enjoy the active years of retirement are thrown into
confusion; the date is delayed by two years and the amount reduced sometimes
halved. Pensions are an area where choice no longer exists, you are urged to
choose doctor, hospital, schools etc. but not retirement; fairness has also
gone out of the window, when you are better off on welfare.
Let us face it at 65, or is it
67, you are a liability; the system has squeezed out all the juice and wants to
discard the shrivelled remains. Yet you are a force to be reckoned with and
need to voice your displeasure, so they sit up and take note and improve the
system.
Pensioners are now one sixth of
Population and are the largest proportion who bother to go out and vote in an
election, with the low turnout numbers that occur today, they are the majority.
In spite of the low pensions, they are still a major spending power and with
time on their hands they are an influence in the local community.
So sit up and take note and show
a little respect to the old fogeys, who are not yet over the hills. In addition
all in work, see their future in the pensioners and it is in their interest to
see they get a good deal. In any case they earn their meagre State pension,
paying substantial contributions.
A person in work, on the average
wage of £500 pw, with their Employer pay 20% of that wage as NI, with 80% of
the total income collected paying the State basic and second pensions. If you
put that 16% into a good funded scheme you would expect to receive a pension of
half that wage, not the measley fifth (20%) the State pays out.
The single tier pension
announced and accepted by the experts as a great step forward, replaces all
other State pension provision including the second pension and SERPs. In
exchange you will get a large increase in your basic pension, bringing you up
to the welfare Pension Credit level, without of course all the side benefits.
You know it makes sense,
bringing all up to the democratic Socialist ideal of equality for all,
regardless of whether you contribute or not; we all starve together and work
hard to ensure it.
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