The next step in levelling down
Here’s a few questions to put to all company executives who tell you they have had to close their company’s pension scheme because it was too risky and expensive.
Is your executive pension scheme safe? The answer is always yes.
When you closed down the pension scheme did you give all your workers a 10% pay rise and the name of a good independent financial advisor? The answer is always no, the huge savings always go to the shareholders.
The pay cut involved in closing a final salary pension scheme is huge, your chances of finding anything similar in the private sector is zero, even if you did get that pay rise. That is how the private sector has robbed its workers of billions and ensured they will be poor in their old age.
But that is just the start. Now the right are complaining about prospective pay rises for civil servants, nurses and soldiers by pointing out they still have generous pensions. They are coming for those next.
Already we have complete tosh about how the state’s pension obligations will bankrupt the country, they won’t. Or that civil servants should have pay cuts because of their good pensions. Which is rubbish because they had reasonable wages and good pensions before; what has changed? Many work for the state for less than they could earn elsewhere because of the pension, cutting their wages and their pension is a recipe for disaster.
There will be much more of this from the Tufton Street mob and the right wing press. Pretty soon the candidates for leader of the Tory party will be campaigning on cutting both the wages and closing the pension schemes of the unpatriotic blob.
And they will shamelessly use the fact that the private sector has closed final salary schemes to whip up envy. Why should Sir Humphrey get a final salary pension when you don’t?
When the real question is: Why does your boss have a multi million pound salary and a company pension, when you don’t?
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media
I met a water company employee in the mid 1990s. He started his working life with Lancaster's water board (he walked to work) which became part of Northwest Water (he had to drive to a depot and could be sent to a house 50 miles away) which combined with the regional lecky company to become United Utilities and he was shifted to a subsidiary that was sold off and then he was transferred to another division of that company. I asked him "What has happened to your pension?" 'I don't know,' was his reply.
Pensions should be a subject taught in school. Maybe they are now? Two pieces of advice received.
1. From an accountant - start a pension as early as possible (he also recommended Equitable Life as the place to put savings)
2. Financial advisor at Westminster Council who recommended buying additional years not AVC’s.