Personal accounts delayed four years to 2016.

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.

Ros Altmann is my hero!!

British pensions guru Ros Altmann is my hero!!! She seems to be combatting the UK government's lack of concern for pensions in a solo campaign. A recent edition of Money Marketing quoted her views that private pensions are no longer suitable for the vast majority of people.
I have been thinking of perhaps investing some more in pension provision
only because I have relatively got not long to go to retirement. Maybe with
Ms Altmann's views, I should
reconsider.
The tax relief is tempting on SIPPs and there is a lot more scope for different
investment strategies. However, there is no guarantee that pensioners will not be
taxed heavily when they have saved relatively large sums only through frugal
lifestyles and cautious investment.

Ms Altmann is a pensions personality of the year for 2007. She has contrasted the
bailout for Northern Rock depositors with the lack of response for investors
in company occupational pension schemes where the sponsor has gone bust.