What Pension Crisis?

I've said it before there is NO Pension crisis - its all smoke and mirrors. Engineered by the Government to squeeze us to pay off their incompetence. At last with Pensioner Bonds they are attempting to help out the beleaguered savers. In the end we cannot borrow our way out of the crisis. While the Bankers continue to make loads-of-money we are suffering.

If Gordon Brown had not raped the Pension funds in the last Government there would be plenty in the pot to finance industry and pay the pensioners but he's spent our nest egg.

Do I have to explain again how it works.

Let people have a level playing field for their pension savings. The money saved is used now to finance "things" later you will draw your pension. Don't worry unless they raid it again.

At least this is a good idea - long time coming. Next we need to regulate the charges that are levied and the rates of annuities that are paid should be kept within realistic ranges. Not to make Bankers FAT!

Building Societies feeling the pinch too?

I am so sorry for them, apparently the Building Societies are feeling the pinch too!

Don't you feel sorry for them? Mortgage rates at theri lowest ever and yet House sales are flat
 - I wonder why.

What did I say a few weeks ago? THis article in Money Mail, explains everything I was saying. 

I remember when Mortgage rate got to 15%! WE don't want that but stable (and low) bank rate is bad for Building Societies. They make their most "profits" on a steadily falling interest rate. They reduce the rate paid to savers immediately but fail to pass on the benefit of lower rates to borrowers for a month. Thus they gain from the borrowers with a bigger margin. If the housing market was steadily risingthen Buildinng Societies would feel safer lening closer to 100% LTV thus giving buyers a better chance to move up the market with smaller deposits required. Its not really the low interets rates that is the problem, great for borrowers so why is the Housing market flat? No confidence that prices will rise, and reluctance of the lenders to take a "risk" lending money.

Yes jolly old HMG can GIVE money (our money), to Private banks, (run for the profit of the Shareholders), who then go off and take massive bonuses and stop lending out to you and me, and promptly slash interest rates paid to us ggod folk who scrimp and save for our retirement (keeping this country afloat!).

So thanks Mr G.  Brown. I thought Labour were the party for the "Working man?" - silly me!

Everybody IN Pensions

So at last everybody is to be IN a Pension. You will have to Opt out if you don't want to be in.

Good idea. The pensions crisis has largely been forgotten in the Economic Crisis but its not gone away and in fact could be both the cause and the solution to both.

What is good - the theory is every one is in a Pension and contributing while they work is actually paying the pension of those retiring. Unfortunately recently its worked the other way - too many retiring and not enough paying in.

Largely the Government's fault. Remember Gordon Brown's raid on Pensions? If the money was in the Funds then they could invest it in business and thus create the jobs and growth we need. But no GB wanted to spend it - now its gone.

To put it right the Government need to address the issues that pension funds are ripping us off (after all they're the same financial folk who run the Banks). They are purely in it to make money, loads of money. The Government needs to ensure money in a pension is fairly invested - minimal and fair charges. If you change jobs you should be able to take your pension with you and not lose out.