Thursday, May 25, 2006

Reasons not to save for your retirement

  • Means tested benefits penalise people saving for their retirement.

  • You pay your own residential care fees if you live in England and have more than £16,000 in assets including your house.

  • Divorce laws penalise savers rather than spenders

  • Income tax paid on savings.

  • Inheritance tax charged at 40% on your estate.

  • The retirement age could easily increase beyond 68 due to "unforeseen pressures on Government finances".

  • Your pension fund could go bust due to poor investment decisions.

  • If everyone sells assets to fund their retirement at the same time, who will be left to buy them and at what price?

  • You are forced to buy an annuity that pays you marginally more than the current interest rate but the capital outstanding is kept by them on your death?

  • You could be dead by then!
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