Thursday, September 20, 2012

Pensions armageddon - the perfect storm

The ONS has just published the latest details about the state of pensions in the UK.

It makes scary reading. No, it makes really scary reading.

These are the headlines

The numbers contributing or having contributions paid into a scheme (active members) continues to fall. In 2011 there were 8.2 million members compared with 12.2 million at the peak in 1967.
Of the active members total, 5.3 million were in public sector schemes and 2.9 million were in private sector schemes

What does this mean? 

We have a future in the UK where there will be a declining number of people with pensions (other than the pittance paid by the government) of those that do have a pension the vast majority will be in the public sector. These are pensions that the UK cannot afford and have to be paid by with borrowed money. 

Even somebody with a Gade D in GCSE Economics can see that spells disaster. 

Even more reason to ensure you are focusing on a retired population that does have some money to spend. They aint going to be around for ever. Dick Stroud 

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