Occupational pension schemes have been a major success
Data released by the Office for National Statistics show that occupational pension schemes have significantly reduced poverty in the UK since the early 1990s. However, there were other interesting statistics issued by the Office today which include the fact that the top 20% of earners in the UK earn four times that of the bottom 20% of earners in the UK. This difference between the rich and the poor has increased dramatically over the last few years even under a Labour government.
However, while there is no doubt that the occupational pension scheme has made a significant difference to general income in retirement there is also no doubt that the real value of the state pension continues to fall. Many believe that the state pension will eventually be means tested which could result in some of the higher returns in the UK receiving nothing from the state in their later years.
In principle the idea of the rich in society assisting the poorer in society has been accepted by many people although some believe that the UK authorities have overstepped the mark in recent times. As taxes continue to rise for those on high incomes and pension payments and other benefits continue to fall it seems that the UK is dependent more and more upon successful business people, while giving relatively little back to them.
Share this..
Related stories
UK taxpayers hit by Post Office pension fund deficit
The UK government has today been exposed to severe criticism regarding the pension fund deficit of the UK Post Office. As we have covered in recent times, the Royal Mail is currently up for sale despite a significant backlash from many Labour MPs and opposition parties. The idea is to sell a 30% stake to Dutch giant TNT for around £3 billion and then use the expertise of TNT to rebuild and refocu...
Read MorePlanning for your retirement
It is a sad fact but more and more elderly people in the UK are ending their lives in old peoples homes away from friends and family but in the care of full time staff and nurses. There had been a move some years ago to try and retain people in their homes for as long as possible but many people just cannot afford these home help services and require full time care. But where do you stand financ...
Read MoreScottish Widows to be named in £1bn pension advice case
Insurance giant Scottish Widows could be facing legal action over claims it misadvised pension schemes. In a dossier compiled by the Actuarial Review Company (Arc), which has been sent to the Financial Services Authority, it is alleged that as a result of the company's advice 100 pension schemes lost £300 million. The advice alleged to have been given by the insurer was to switch from guaranteed...
Read MorePension Reform is unclear, say MP’s
A group of cross-party MP’s have expressed their concern that the Government has not done enough to explain to the public how the forthcoming revamp of the state pension will affect them. It is thought that around 40 million people will be affected by the changes, and although members of the Work and Pensions Committee say they support the scheme, they have said that the Government must do m...
Read MoreEHRC suggest retirement age should be scrapped
The Equality and Human Rights Commission (EHRC) has today issued a report suggesting that the official retirement age in the UK should be scrapped. The commission believes that employers in the UK should be incentivised to maintain older staff within their workforce and utilise their experience and skills into later years. However, is there an undercurrent to this particular suggestion? While i...
Read More