Quite. I recommend the whole article.
The Government have made sure that anyone who is within ten years of retirement will be able to retire on their current terms and they have also confirmed that low earners making under £15,000 a year (15% of the workforce) will not have to make increased contributions. In addition, another million workers earning up to £21,000 will have their total increase limited to 1.5 per cent over three years. Accrued benefits that people have built up already will be protected.
I find myself reflecting on the situation faced by those without taxpayer-guaranteed benefits. Suppose the aim is a retirement income of £15,000 a year for life. That means buying what’s known as an annuity. With pension savings of £10,000 buying an annuity worth about £500 a year today, to achieve just £15,000 a year, one would need pension savings of £300,000. To achieve a more comfortable £25,000, one would need to have saved £500,000.
And that income would not be index-linked for protection against inflation.
Wednesday, 30 November 2011
An unjustifiable strike
Another excellent article from Westminster's most promising MP: