Pulling up the ladder
The good news is that pensioners have never been better off, the bad news is that this is a one off and future generations are being shafted and they don’t even know it.
As an under reported study from the IFS into the future of pensions points out, the system is creaking with: a continued decline of defined benefit schemes, the abolition of state earnings-related pensions, low interest rates, falling homeownership, low typical contributions, and a collapse in pension saving among the self-employed.
Current pensioners have had the complete opposite and then didn’t fight when their younger colleagues were denied the same benefits they got. They let companies and government’s wreck the system to save money and increase profits. Because they were alright Jack!
Abolishing final salary schemes for workers was a huge saving on the wage bill, no company I can think of abolished their pension scheme and gave everyone a huge pay rise and the name of a good personal financial advisor.
The consequences will be dire. The young are priced out of the housing market, saddled with student debt, paying for today’s pensioners and the NHS out of ever higher tax rates and now are going to be poor in their old age.
It also provides the perfect excuse to abolish Civil Service pensions, why should you get a good pension when people in the private sector can’t?
The government is impoverishing the young, for life. Something will have to give.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media