Saturday, June 26, 2010


According to a news report on BBC's Breakfast program, the pension age rise to 66 will mean that although you will lose one year's pension your pension at 66 will be 10% higher.

So, a pension of x at 65 will be a pension of x + 10% at age 66. This means living to 76 years the new retirement age will have no overall effect on the pension bill. Yes, that means no savings. 10 years of claiming pension from age 66 costs just the same as retiring at 65.

According to The Office for National Statistics, men will live to 76.4 years.

'Google' life expectancy UK and you will see other institutions give similar results.

Of course, this will mean fewer jobs for younger people. And if you are too ill to work until 66, it is likely the current incapacity/sickness benefits will be slashed so if you are lucky enough to be able to claim them, they won't be much.

The conclusions are several if men are to live until 76+, claiming their pension + 10% at age 66 with no overall reduction in costs-

  • That we are being deliberately mislead, once again politicians fooling us into believing they are 'doing something'.
  • That the problem will not be the current administrations problem.
  • That as the pensionable age is forced up we will be worked to death before we claim a pension.
  • That more draconian measures are planned.

It seems that old age, poverty, incapacity, inability and sickness is to be penalised so the banks can stay rich.

The 16 or so billion pound deficit is a drop in the ocean for the banks that caused the problems. Why are they not being made to pay?

Tens, if not hundreds of millions of pounds ( of taxpayers money was used to bail out the banks, much more than the deficit. Make the banks repay the money and there will be no need for these draconian measures AND LOTS TO SPARE!

The problem is these measures are not about the deficit. They are about the traditional Tory values of making the poor pay for the luxuries and wealth of the rich.

Watching question time last night, Peter Hitchens, a noted traditionalist conservative said as much-

"it's all very well to say tax the rich, fine by me,  tax the rich but there aren't enough rich people to make a substantial difference. If you have the kind of economy we have…  you have to tax the poor, there isn't any other way you're going to afford it."

This is typical Tory policy. This is typical of Tory half-truths. Because while it may be arguable "there aren't enough rich people to make a substantial difference" the fact is that the dearth of rich people is more than compensated by the fact that currently 1% of the population hold 70% of the wealth.. I would argue that while there may not be enough rich people, they certainly hold enough of the wealth.


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