Monday, June 20, 2005

Use the forced savings, David

David Blunkett really can't help himself. Why break a nut with a nutcracker when a sledgehammer will do? Faced with a growing pensions crisis, the only possible solution for David is compulsory savings. How would it work? Will they have a sliding scale for savings? Will you be fined if you don't save enough? Will your taxes go down in recognition that you will not receive a state pension when you retire?

It would be more sensible for David to stop the means-tested benefits of pensions. People would then face the radical approach of being rewarded for saving for their retirement rather than being penalised as they are with the current system.

I still struggle with being forced to buy an annuity with 75% of my pension pot. If I die just two years later, the pension provider keeps the remaining funds rather than my heirs!! What sort of an investment is that!?!

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