The latest big idea in the British pension mess, personal accounts, are to be delayed
four years to 2016. A total of 8 pct of pay will be contributed by employees (4 percentage points), employers (3 percentage points) and the government with 1 percentage point. However, Moira O'Neill of the Investors Chronicle quotes pensions expert Dr. Ros Altmann, who wonders what pension income will be achieved. Current forecasts are too optimistic given worsening annuity rates.
I think one concern is that pension income could be heavily taxed in the future to pay for the demographic bulge of old people. The state pension age could be lifted quite quickly to 70 in order to save money. It would be interesting to see what people would live on. I suppose the complexity over pensions could be reduced.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment