Cambridge, UK (PRWEB) April 5, 2006
"It was interesting to see the high levels of support to which the UK unions received from their strike call last week, and the high level of ongoing high feeling about the whole pension situation." According to Geoff Morris, who has been looking at the pensions scenario in both the UK and US, and noted many similar trends, he has been advocating the use of private investment on an individual basis to produce wealth for people’s old age rather than them just sitting back until they reach 65 or so, and expecting the State to give them big fat handouts.
In his quest to get people ‘off the fence’ and to start to help them to build what could be quite a rosy financial future, he has tried to put his opinions forward as to why so many people seem to be in this mess that they feel disillusioned enough to take strike action.
These are the reasons that Geoff Morris has put forward as to why we are in this perilous state.
The first is that the UK government, for whatever its reasoning, chose to remove many of the tax incentives to employees and employers alike that supported pension funds, which has not only reduced the amount of pension money available, but also reduced incentives for saving more. It is also burying its head in the sand, as it doesn’t have the answers to questions like - what will happen when millions more people than today become due for their pensions as the whole demographic composition of our society changes!
The second reason given is that as pension funds are invested in stocks and shares, then due to poor performance of the stock markets of late, this is why funds are nowhere near the anticipated levels. Strange – I note that the ‘Footsie’ or daily stock market indicator, shows that the stock market is at a very high level ( it actually passed the 6,000 mark last week, and three years ago it was languishing around the 3,000 level).
The third reason is that the people who are in a position to make any changes – i.e. the politicians, have just awarded themselves a nice little package whereby they can retire at the young age of 60, on a very fat income from the State . Not a very clever thing to do, considering the public feeling at the moment,
The fourth and probably the most vital, is the following. If you have this ‘entitlement’ attitude to the State providing you with sufficient pensions, health care, social care when you need it, just think what is going to happen as the whole make up of society changes, and as the ‘Baby Boomers’ reach retirement age, millions upon millions more people become ‘entitled’ to this care.
So realistically, if there is no money in the pot to be handed out, then what is the point of going on strike? All that does is annoy people, disrupt lives, and cause many people to lose pay.
What Morris is advocating, is that people should try and become more responsible for their own financial stability, looking away from the State, or even many Institutional lenders, even with the sting that what he is envisaging would certainly carry a higher level of risk than normal.
But then, what level of risk will the average person be willing to take to secure a financially secure future for his or her family?
To many people, using property as an investment for old age just doesn’t seem to gel, but when you consider property tends to double in value every 10 years or so, why don't they try and make the effort and buy at least two investment properties in their life, then sell one at double its price to pay off the other, or sell them both at retirement age and have funds to enjoy life with?
If anybody thinks that property investing is only for the ’filthy rich’ then they should get the free booklet produced by Morris’s company Property Horizons Ltd.
To get yours, click here, http://imnosey.com/ht
or leave a message on their 24 hour UK Freephone number 0800 458 9652
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