Punished for savings for one's retirement
Gavin Ayling says what I've been thinking:
I'm currently sacrificing current expenditure on stuff I'd like in order to contribute more to my (defined contribution) pension. My big fear is that I'll be punished for this when I retire by being taxed on these savings at some punitive marginal rate (via the pensioner credit system or one of its successors). I want a political party to stand up and say, categorically: "You will not be punished for saving for your own retirement".
I still remember the unspoken sadness whenever my father's aunt spoke about her next-door neighbour. My great-aunt had saved for her retirement (in a very modest way). Her neighbour (who had worked in the same factory) had made no such provision. They both had the same income in retirement. She just couldn't understand what she had done wrong.
I will, therefore, take this opportunity to remind him that the state serves us and that individuals should have responsibility for their own actions. What the government should do is announce that there will be no state aid for todays young people who fail to save. They wont say that and all todays young people will, instead, assume that the state will protect them from old-age-poverty.
I'm currently sacrificing current expenditure on stuff I'd like in order to contribute more to my (defined contribution) pension. My big fear is that I'll be punished for this when I retire by being taxed on these savings at some punitive marginal rate (via the pensioner credit system or one of its successors). I want a political party to stand up and say, categorically: "You will not be punished for saving for your own retirement".
I still remember the unspoken sadness whenever my father's aunt spoke about her next-door neighbour. My great-aunt had saved for her retirement (in a very modest way). Her neighbour (who had worked in the same factory) had made no such provision. They both had the same income in retirement. She just couldn't understand what she had done wrong.
posted by Richard Brown at 10:02 AM
2 Comments:
My own great auntie had a similar experience, she worked all her life and had a little in savings (and I do mean a little). Because of this every winter her house was freezing as she could not afford to get central heating, and had she spent her savings the State would give it to her for free. But foresight and self-reliance is about the worst sin you can have in the eyes of the Welfare State.
foresight and self-reliance is about the worst sin you can have in the eyes of the Welfare State
Scarily true. It would be fascinating if someone could calculate a "don't bother saving unless you can put away more than £xxxx per year" figure each year and see how it changes.
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