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      12-24-2012, 06:54 AM   #1
United Kingdom

Drives: M5
Join Date: Jan 2009
Location: North East

iTrader: (1)

Britain's sleep walking into its next crisis

At some point in time even BMW drivers retire.

Would you like to continue to drive a BMW once you do?

Well if you would, you'd better wake up now and start doing some very creative planning, regardless of your age, because the trend is looking like you'll be lucky to pay your gas and electricity and council tax bills AND put food on the table. Unless you start doing something now beyond just State and Company Pensions, there's almost certainly a used Micra in your future!

A fate worse that death? The facts don't look promising

Were you aware for example that saving the maximum amount annually in a company and/or private pension until you reach the Government's recently introduced limit will give you an annual income of just 25,166 for an index linked pension with 50% widow's cover.

Add the State Pension and you're maxed out at 29,742 nett income.

That's correct. Max out your NI contributions and your company and private pension allowance and you can look forward to 2,400 a month.

According to the Government, only 6% of families will reach that limit, so most will never see even that relatively meagre amount.

The chasm between regular employment and pension income has never been wider and the Euro crisis and subsequent UK Governments' propensity to raid pension pots is making it worse.

The recent economic collapse was already clearly predictable back in 2003, given the house of cards that passed for economic policy. The next perfect storm of old age poverty is now gathering.

Anyone depending solely on their State and Company Pensions for retirement is probably in for one of the biggest dissapointments of their life and the situation is unlikely to improve any time soon.

I'm selling nothing.....just saying that the writing is once again most clearly on the wall. Government policy is now cynically predicated on the electorate having an expert's understanding of the tax code and the various shelters it offers. 'Cynically', because they know very well it doesn't.