Iain Duncan smith is proposing reforms to the pension system, designed to simplify the system and encourage younger people to save for retirement. Mr Duncan Smith said: "We have to fundamentally simplify the system. And we have to make it crystal clear to young savers that it pays to save." The trouble with that statement is it does not pay to save as hardly any bank accounts pay much if any interest anymore and pensions offer an even worse return. This low to no interest payment is a deliberate policy to discourage saving and encourage spending to stimulate the economy.
Looking at my parents and the private pensions they have they have barely made any money and would have made near double this in ordinary bank accounts so investment is not a good option either as the investors take the lions share. Unless you are earning well above the national average it is not worth saving as you will have very little to show for it at the end. In addition it may not be possible to save anything at the moment as I have personally found out I now have spend the vast majority of my money on simply having somewhere to live and to get to work. I am unable to invest or save as there is little to no money spare after bills. Whilst it is laudable that the government wants to simplify pensions and save money. At the very least the government needs to help to make saving and investing possible before they make such changes to the pension scheme.
No comments:
Post a Comment