Much of our news this week covers pensions. Not because we love them though! But, come 10 December this year, Gordon Brown is to announce the Government’s "tough decisions" on pensions, as he told the annual conference for British Industry recently.
One decision that has been released is that State pension spending will stay at 5% of Gross Domestic Product. This is definitely not what was needed in order to appease pensioners with very large council tax bills.
However, Mr Brown has already been criticised for placing reliance on means-tested benefits to help out poverty stricken pensioners.
Our View
The pre-budget report is a little later this year but should be something to mull over during the festive period.
We are sure this is not just a coincidence. As Liberal Democrat Lord Oakeshott mentioned, the population of pensioners will increase from 18% to 24% by 2051.
Not committing additional spending to the State pension could spell disaster.
Our view is actually very simple and everyone should understand it. The Government will not provide for you in retirement, with the exception of a subsistence standard of living. If you want to live your life and do the things you always dreamed of in retirement, start saving now.