My next door neighbours had a letter from their Pensions' people saying that despite volatility in the investments that back the payments there would be no affect on theirs.
I would suggest this is actually misleading in the longer term but truthful in the short term. If stock markets do not revive then all pensions are at risk.
Government Pensions are a Ponzi scheme where today's Civil Servants, Teachers, Nurses etc pay in to the "Pension Scheme" and their money goes to those who are retired. i.e. There is no Government pot of pension gold - just a promise to pay the pensions of today's workers with money put in by people in the future.
The Pensions Lifeboat makes up for Pensions being paid but the actual funds are not enough to keep going. BHS was a classic £600m short - many well known companies are still trading but with huge deficits in their pension schemes.
A brother has just turned 65 and is still working BUT last year his very small company, with some 20 people paying into the Pension Scheme, had to fork out some £30K to the "Pensions Lifeboat" to help support failing Pensions Schemes of other employers.
£30K might not sound a lot in business terms but that is £1500 less for each of his current employees when they retire... and that is in 1 year. Heaven knows how much they could bill him for next year.
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Pension proof future ? new
Pension proof future ? new
