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Pension Squeeze

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Comments

  • #32
    GCU Flexible Demeanour
    Closed Accounts Posts: 2,257 ✭✭✭GCU Flexible Demeanour


    http://www.independent.ie/national-news/dont-trust-workers-on-pensions-warns-expert-3243046.html

    WORKERS are too ill-informed to take responsibility for their own pensions, a leading academic has claimed.

    Professor Alan Barrett told a conference there was a need for the Government to be involved as the area was too complex for ordinary consumers.
    Is there not a more fundamental issue here – which is that there is no level of collective saving that can secure a sufficient income to enable mass retirements at high standards of living. Every pension scheme is a Ponzi at some level; the only question is at what point in the future the chickens come home to roost.


    Plus, as an aside, lots of money in pension funds means lots of demand for stable income-producing assets; thus almost guaranteeing that those assets will be overpriced and thus be unable to provide the desired income at reasonable cost.

    The “experts” are letting us down. Following their advice on this will only lead us to throwing good money after bad, by being forced to contribute to some fund, all in search of this pension illusion.

    I mean, the concept of defined contribution should be setting off alarm bells. “Give me all your money, but don’t expect me to tell you what pension you’ll end up with. Incidently, I’m an expert and you’re not competent to decide on these things.”


  • #33
    dvpower
    Closed Accounts Posts: 9,183 ✭✭✭dvpower


    spank_inferno wrote: »
    What if....

    We remove all tax relief on private pension contributions.
    ->
    Then use that money to increase the state pension for all.

    - No more rich people getting 40% tax relief vs poorer peoples 20% vs those who cannot afford a pension contribution of any kind.

    - A higher public pension for all.

    - Those that wish to save for their retirement in a private fund are still free to do so.
    Good idea - If they stopped taxing annuity income the same way as earned income.


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