Tuesday 17 December 2013

UK: PENSION RIGHTS DECLINE ! WHY ?


The obvious reason why Pension Rights are to decline, is because there was a "baby boom" just after the end of the Second World War in 1945 and there are now many more "old people" entitled to pensions.

What seems "obvious" is not always the reality !  There are other reasons !

The reality is that now, pensioners who want to invest money to safeguard their later years, cannot make loans to banks at reasonable interest rates !  To put it bluntly, they cannot invest spare cash profitably. 

The first "fatal blow" was when Gordon Brown "taxed" Company pension schemes.  This meant that Companies were forced to close the schemes because they could no longer ensure the benefits at the same level for beneficiaries.  

The second "fatal blow" was when Banks, with the help of computors and "speculators", were let loose on stock exchanges to "make a fast buck" !  Banks never reported "fast buck profits" but when they were caught-out after a speculator had made a huge loss, they needed huge refinancing "not to go under" !!!

The third and final "fatal blow" was when the Central European Banks decided that low interest rates must be guaranteed to help "countries" in difficulty to obtain financing at a low cost !

Now the Cameron Government wants to reduce benefits to reduce costs and just to balance the National Books !

Hammering the very people who are at the end of their lives, who no longer have the force to protect themselves, is to misunderstand what Social Security has as its aims !

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