Several of my friends are older than me....late 60s, early 70s. Quite a few of them retired from the private sector with good pensions, and a few of them get a guaranteed 5% increase pa. That, together with their state pension, free bus pass etc, and retiring around the 60 mark, mortgage free, means they have no financial worries. Chatting with them recently over beers ( social distancing observed) they had no qualms about that status quo changing.
It got me thinking...what if the private sector companies they worked for went bust ? I anticipate a long lasting recession and am under no illusions about a speedy general economic recovery within the next few years. A pessimistic view perhaps, but best to plan for the worst and hope for the best.
If their previous employer has a large pension deficit and the company is unable to borrow funds, either because it is running at a loss, or has ceased trading, then how can they expect to continue receiving their private pensions? Obviously I’m no expert in this field, far from it, but in simple terms, how could the current scenario pan out paying retirees pension money a company doesn’t have?
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Pension proof future ? new
Pension proof future ? new
