Rachel Reeves wants to make it easier for your employer to invest pension money but will this government plan ruin your private pension?
According to the BBC,
The Treasury said defined benefit pension schemes have a total surplus of £160bn, but under current rules much of the money is trapped and cannot be invested in the wider economy.
The government has made boosting growth its main priority in order to boost living standards.
This is either a forlorn hope or an outright lie. As we know, there is far too much inequality in the UK to make investment of any kind lead to an improvement in the living standards of ordinary, let alone poor, people. The money will go to the rich – if any is actually made and it isn’t invested in loss-making schemes.
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Additionally:
Defined benefit pensions, sometimes known as a final salary scheme, are directly linked to a worker’s salary and length of service.
Three-quarters of the funds that pay out these pensions are in surplus – which means they effectively have more money in them than needed to meet those pension payments.
However, just a few years ago, many schemes were in deficit, external when interest rates were lower – prompting some companies to reduce their pension offer, and a reversal could occur again.
This means that, if the pension scheme operators invest money poorly and interest rates fall, they could effectively clean out their pension funds and people who paid into them may get nothing. Doesn’t it look that way to you?
A better idea might be for the (current) surplus to be used to improve the pension offer for all staff; this would release money into the community that would be spent into the economy – because pensioners tend to spend most of their money, simply to survive.
Reeves’s idea seems to be another attempt to get at other people’s money – with no real concept of how to use it wisely.
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Will this government plan ruin your private pension?
Rachel Reeves wants to make it easier for your employer to invest pension money but will this government plan ruin your private pension?
According to the BBC,
This is either a forlorn hope or an outright lie. As we know, there is far too much inequality in the UK to make investment of any kind lead to an improvement in the living standards of ordinary, let alone poor, people. The money will go to the rich – if any is actually made and it isn’t invested in loss-making schemes.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Additionally:
This means that, if the pension scheme operators invest money poorly and interest rates fall, they could effectively clean out their pension funds and people who paid into them may get nothing. Doesn’t it look that way to you?
A better idea might be for the (current) surplus to be used to improve the pension offer for all staff; this would release money into the community that would be spent into the economy – because pensioners tend to spend most of their money, simply to survive.
Reeves’s idea seems to be another attempt to get at other people’s money – with no real concept of how to use it wisely.
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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