Saturday, 22 March 2014

It is not 'insulting' to be concerned about pensioner finances

As the analysis of Osborne's budget unfolds there is concern that the changes to pension funds will leave pensioners vulnerable in relation to financial decisions. This has been dismissed by government spokepersons as being 'insulting' to the ability of pensioners to make decisions. This must be one of the most absurd statements of the week. I would not call it insulting. In the light of so much recent legal action on mis-selling of financial products and inappropriate marketing I would call it sensible concern.

Unless the market is regulated and appropriate safeguards put in place the I think we will all be vulnerable. It is clear that this has not been thought through. There will be a host of new and difficult to understand financial products flooding the market. It will be a mess.

Osborne has taken a bold decision but he appears to have taken it without proper regard for the consequences.

1 comment:

  1. The generation before the 1950s Baby Boomers lived in a different world and that parent generation are too trusting.

    As the old have got poorer, there will be the temptation to take the whole sum and live off it, to pay fuel bills and general survival bills.

    After 2016, a huge chunk of money will be lost to pensioners with the Flat Rate Pension that will end housewife's state pension, pension credit, SERPs, S2P, so the mere 30 per cent who will get the full flat rate, will actually be getting less state pension, with current pensioners left forever on lower state pension. There is no law that guarantees pensions as that law was revoked in 1993 so government is under no obligation to pay pensions. The Category D pension for new claimants turning 80 after 2016 is lost.

    The loss of £3000 of tax allowance at 65 from 2013, will also have reduced substantially pensioners money.

    https://you.38degrees.org.uk/petitions/state-pension-at-60-now

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