New iPhone app - watch your pension scheme
Governments have been complaining for years that many people who could afford to contribute to a scheme by buying less non-essential "stuff" choose not to do so, so why are they allowing this opt-out? Does this mean that there will still be benefits, funded by the rest of the taxpayers, above their OAP entitlement, for those who find they don't have enough to live on?
Obviously, when the state pension was introduced it had to be funded from current taxes, so that those who were already retired or who could only contribute over the short working life left to them could receive it, but I have never understood why contributions were not gradually increased so that, after WW2 at least, a surplus would be generated and invested in a scheme (as with Civil Servants, not under government control) which by, say, 2000 would have resulted in most people receiving their OA Pension from it, rather than from the pockets of current taxpayers - who are reportedly becoming less tolerant of paying the older generation's pensions, while continuing to be feckless in investing in their own.
I really wonder why anyone starting off in their working life would bother with pension planning. The greatest rip-offs for the working man in the late 20th centaury were endowment mortgages and pensions. They made wild promises to draw us in only for the fat cats in the city to cream off our savings under the guise of management fees etc. I advised my own children to make their own plans, hold on to what they earn and to go and live abroad, away from the grasping bankers!