So there is a pension crisis. The government has filched £5 billion per year from pension funds and then acts surprised that there should be a consequence!
A report published last week confirmed what everyone already new—that there is a substantial shortfall in pensions provisions, and that many of us are going to be short of cash when we retire.
There are apparently three options to cure this.
Private pensions invariable rely on investment in the stock market to hit earnings targets. It is the government which is responsible for the crash in the stock market and the drop in returns on pension funds.
Pension funds are scarcely likely to be motivated when someone is raiding them to the tune of £5 billion every year.
But that is not the only drawback with paying more into private pensions. Those who do not invest for the future are bailed out by the government, whilst those who are thrifty lose out. Hardly an incentive to invest for the future!
This government has had over 7 years in which to restore the link between pensions and pay—it is time they got on with it..