Friday, March 06, 2009

"The sad truth is that pensions savings are going to be what pays the price for these efforts to bail out the economy in the short term."

One of the effects of the shock waves of the Bank of England decision to start increasing the money supply, by supply the money, looks like being drastically damaging private pension schemes - as the price of annuities becomes very unfavourable. This may in turn kill of the remaining final salary pensions schemes.

Add to that the worries over the re badged Norwich Union Aviva solvency - well it worries me as much of my pension is with them - and only the public sector gold plated pensions are standing.

Perhaps the government is going to need those troops on the streets after all.

What we are seeing is the systematic confiscation of private wealth by the government, though future taxation to repay debt, tax on pensions, devaluation of annuities and the low interest rates. No wonder Gordon smiling so much.

I'm not sure any of us will be able to afford to grow old.

* The quote in the post title is from Tom McPhail of Hargreaves Lansdowne from an article in the Telegraph.

1 comment:

Anonymous said...

Every aspect of our society is being destroyed and degraded.

I think this is deliberate.

I think it unlikely that anyone could be so incompetent.

A strong English society is a hindrance to the establishment of the "new society" that these people have wanted since their college days.

(Not the BNP)