Under current laws the State Pension age will be 66 in October of this year - we know they’ve done this to save money but what happens when that’s not enough?
Between now and 2042 an extra 4.5 Million people will be drawing their state pension, but who is going to pay for that?
The governments dirty little secret is that they don’t have any cash reserves to pay for it, it all comes out of current taxation collected today, so the more older people there are the more money they have to find.
The problem is as a nation, we’re ageing, and on top of that we’re living longer.
Your National Insurance contribution isn’t for you, it’s for Beryl and Doris to go to the post office and draw out their pension tomorrow. So what nipper snappers in 20 - 30 years are gonna fund your retirement?
Isn’t this what Bernie Madoff got 150 years for, from robbing Peter to pay Paul? Also known as a Ponzi scheme
Here’s what google says:
"A Ponzi scheme is a type of fraud that get’s new investors to invest and from their cash profits, older investors are paid"
So the money has not actually grown, it’s just a vicious wheel that only works as long as new lambs are brought to the slaughter and fresh money is pumped in the pot, but as always, it will eventually come crashing down like a house of cards once the well runs dry and the money runs out.
Isn’t that what’s happening? We're paying our National Insurance today, so I’m the new investor, for my Nan to pay for her groceries and Bingo, not that I begrudge her of that one bit, but it’s not put aside for me, it’s spent, tomorrow.
The moral of this is, you can't rely on the government providing you a retirement fund when you hit 66 (assuming it hasn't risen by the time you come to retire). Not only will it probably not be enough for the lifestyle you become accustomed to - but it probably won't even be there at all.
Thanks for reading.
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