Do You Wanna Know a Secret?
State pensions are not about to increase massively, the @WASPI campaign for all of the women that have been treated pretty poorly buy succesive Governments are not going to get the result they want.
But Richard Harrington the new Pensions Minister still doesn’t have a clue about the real world and nor is he telling the whole truth.
State Pensions have been eroded for years and look like they are going to continue in that way. Let me ask you a question, do you think your State Pension is likely to increase much over the coming few years?
For every year retirement ages are pushed back it will cost you least £6,000 under current rates of payment. And then there are the existing pensioner voters who have been kindly given a ‘triple lock’ – guaranteed increases in payment over their remaing lifetime. All funded of course by those of us currently paying into the system but not yet being old enough to draw a pension.
For some specific guidance on this area of your planning you can ‘borrow my brain’
Steve Webb (who blocked @moneytrainers on Twitter) seems to think he’s done a great thing, and of course has been knighted for his work. Only… it’s us who are left picking up the bill for his great work.
Pensions are a problem.
- Gilt edged Final Salary Schemes (think Teachers, Civil Service) have massive liabilitys that will have to be funded by future taxpayers.
- The ever decreasing state pension will have to be funded by future taxpayers.
- Auto Enrolment is putting fees (charged as percentage of funds) into the pockets of firms and advisers – with no explanation as to the options.
Pensions are tax deferred income, they are not the sole solution to a problem that’s been around for years and years. Taking income from those on low wages, forcing them to invest in a pension and then forcing them to pay the charges, and then having their final pot taxed is not in everyone’s best interest.
Do the maths on pensions, look at the fund performance, look at the charges. They are not what they seem and not a solution for most and certainly not the lower paid.
When you need some help remember you can borrow my mind and get some solid information about your long term future planning. Pensions have never ever made any one rich and nor will they now.
- If you have old style pensions (before 2010) there is a chance you’ll be paying more charges than you need to.
- If you don’t know how to extract the right information about your pensions.
- If you don’t know what your State Pension is likely to be.
Get in touch. I’ll solve those problems for you free of charge. No problem.