I do not think that the two are necessarily linked but both are Tory agendas. Raising the pension age is practical as we are living much longer. Actuaries have made huge errors in terms of life expectancy and investment returns. Also increased contributions are necessary as investment returns over the last twenty years have fallen and are not enough to pay the pensions required to give people a pension of two thirds of final salary. Longer term the problem for any government is that unless returns climb then everyone on a defined contribution pension will require additional pension top ups from the state to survive. In fact this element of pension reform has been ignored by all parties. Those on defined contributions are simply not putting enough away to cover a pension that they hoped to get, or need to just cope. All but the very few will have to rely on the state pension to cope. So what governments are doing is passing the burden on to people so that they can pass on tax cuts to the rich. George Osbourne is currently running around the treasury to raid the pension funds himself. It is estimated that his take will be similar to those of Gordon Brown's pension raid. What we should be doing is raising the costs of defined contribution so that defined benefit pensions are not at such a huge disadvantage. We also need to reform pension fund management so that companies can raid them like Robert Maxwell did or underfund them like Phoenix did with Rover. One single pension fund per company and no separate pensions for directors. They will have to be in it with the staff, so they have an incentive to maintain it.

The Tories will get on their tax cutting agenda but the country will not benefit as the vast majority will end up in the hands of the rich and your wages will stagnate.

Already happened. I can't remember the last time I had a pay rise and I was hearing on the radio last night that Virgin Airlines pilots haven't had a pay increase of any sort at all in five years. Now they're being offered a staged rise over the next three years which, even combined, is less than the current RPI. So effectively their wages will have been continually falling in value for eight years on the trot. Surprisingly enough they've said no, and voted 95% in favour of a strike on a 97% turnout. And these are airline pilots for pete's sake, not bolshy underground drivers or anything. They're about as conservative a bunch as you get. The fact is apart from the lucky few, everyone on a salary has had a pay cut over the last few years to pay for the.. recklessness of the few people who don't seem to be suffering all that much as a result.

We're nearer to Greece than a lot of people seem to think IMO. If Greece goes and takes Ireland with them, a lot of people in the UK are going to get very pissed off at the results. And they're going to blame Osborne & co, because they're in charge right now, regardless of whose fault it actually is.

Jon

I have read somewhere that UK wages have been stagnant since 2003, which means many people have been suffering for a long time already. This is a failure of all the main parties as they were all simnging from the the same economic song book. Things would be no better if the Tories or the coalition had been in power before the financial crisis.


We are already closer to the US than Greece. Though I suspect that in three years we could be close to Greece or Ireland come election day, unless of course they change policy completely. Though they would be completely right to blame Osbourne & co because they will not have reformed the banks so the time bombs that will hinder our economy will still be there.

I must be a lucky bugger. My wages has gone up by over 25% in real terms since 2003. Hoping I keep it and a final salary pension scheme.

You're an MP aren't you? Come on, admit it.

Jon

nope, Just a Lab worker.

Corrected.

Me to since I moved "down south" from "Up North" in 2006 by Wages have increased by over 100% - but then my mortgage increased by over 800%

One day I wish to climb to heady heights of Lab Rat. At least they have to be treated right by law

So how much worse off are you overall then?

A bit more complex as

Went from living alone (Small Mortgage/salary / simple lifestyle)
to
Living with SWMBO (LARGE mortgage but better salary (plus SWMBO’s salary)/an expensive shoe habit lifestyle)

And there is the clincher! You are completely screwed.

'fraid so

been there done that .single again but no shoes.

Yes somehow the bloke never seems to end up with the shoes.