Pension Crisis

Everyone needs to know that there is a pension crisis. Experts are worried that numbers of pensioners living in poverty will increase as companies stop their pension schemes. In 1997 about 60% of the work force had company pensions now it is around 39%.



Men and women are continuing to work longer into old age when their predecessors would have been retired and enjoying a more relaxed lifestyle.

It is now worrying to be told that upto 80% of pensioners could be facing being below the poverty line. £130 is needed to have a reasonable standard of living taking into Consideration food, heating and everyday expenses this is over 50% of the basic state pension.

The Chancellor is being blamed for the crisis because of his decision to stop dividend tax credit. There are changes being made by the government to enforce bosses to pay into schemes for those staff who will be unable to claim their pension until they are 68 years of age.

The Dept of Work and Pensions say they are proposing packages so that this does not happen again in the future.

Public Loses Faith

The Pension investment is collapsing as people look for other ways to save for their retirement.

A survey found that 63% do not save with private pension. 89% of the 2000 surveyed thought it was important to save and 76% think it is vital to provide financial help to their children. Around 50% said they could not afford to save but only 3% said they would have to rely solely on their State Pension.

The general consensus is that pensions do not provide for retirement and these products need to be replaced or bought up to date.

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