Pensions scandal

Pensions were a marvellous innovation, until then workers had to work until they dropped.

A pension is a form of enforced, compulsory saving for old age. The worker contributes, as does the government and employer, contributions are tax free. On retirement the worker has a guaranteed minimum income.

At a stroke, the ConDem government had destroyed the scheme.

From today, it is possible to draw down the entire pensions pot.

Anyone who does, will lose almost half, as classed as unearned income and will attract the higher tax rate of 45% (Labour have said they will put up to 50%).

The money once withdrawn, no longer in a pension pot, will then attract tax.

The feckless will go on a spending spree, leaving themselves destitute and the taxpayer to pick up the tab.

Spivs and conmen and that includes the banks and other crooked financial institutions are lining up to relieve the gullible of their pension pots. They have yet to fully compensate for previous miss-selling scams. The Daily Mail has reported lists of targets being openly sold.

Expect a sharp rise in nuisance phone calls, text messages and e-mails.

The Independent Pension Advisor appointed by the government has advised most people would be best off leaving the money where it is.

Citizen Advice are expected to give advice, but they are not competent to do so, and already are overloaded having to deal with benefit sanctions, rent arrears due to Bedroom Tax and debt.

It is always wise to follow the money, who benefits?

Not the pensioners, who are better off leaving their money where it is.

The beneficiaries are the banks.

And who gives lots of money to the Tories?

Er, the bankers.

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One Response to “Pensions scandal”

  1. keithpp Says:

    What a pensions shambles! Revolution in crisis as savers are barred from taking out cash and charged £1,000 just for advice… and scandal could be worse than PPI

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