Comments on: http://www.johnredwoodsdiary.com/2007/04/18/the-great-pensions-debate/ Conservative Party Member of Parliament for Wokingham Sun, 20 Jul 2008 06:54:12 +0000 http://wordpress.org/?v=2.5.1 By: a-tracy http://www.johnredwoodsdiary.com/2007/04/18/the-great-pensions-debate/#comment-1718 a-tracy Wed, 18 Apr 2007 14:30:51 +0000 http://www.johnredwoodsdiary.com/?p=211#comment-1718 Don't worry John, everyone out in the real world without a public sector job or large company final salary scheme understands full well they're much worse off in their old age than they thought they'd be when they started saving into pension schemes (without company pension holidays that Polly T likes to use to diffuse). I know too many people that have stopped saving into their pension figuring they're safer with housing investment whilst enjoying living in the larger property in the mean time. Everyone talks about tax advantage of pensions but you'll still have to pay tax on your private pension when you draw it and my generation keeps getting clobbered as we go along (can't draw state retirement until 68, mum's generation 60;annuities decreasing in value;paying for dental plans) who is to say that the state of the tax take that our 'long term' chancellor is endowing upon our children will be so hard to fund that we won't be all contributing 50% tax on our pension earnings when we finally retire to prop up the pack of cards as it falls. (Is this tax rate guaranteed i.e. it can't rise above the average tax rate of the period we were working?) Don’t worry John, everyone out in the real world without a public sector job or large company final salary scheme understands full well they’re much worse off in their old age than they thought they’d be when they started saving into pension schemes (without company pension holidays that Polly T likes to use to diffuse).

I know too many people that have stopped saving into their pension figuring they’re safer with housing investment whilst enjoying living in the larger property in the mean time.

Everyone talks about tax advantage of pensions but you’ll still have to pay tax on your private pension when you draw it and my generation keeps getting clobbered as we go along (can’t draw state retirement until 68, mum’s generation 60;annuities decreasing in value;paying for dental plans) who is to say that the state of the tax take that our ‘long term’ chancellor is endowing upon our children will be so hard to fund that we won’t be all contributing 50% tax on our pension earnings when we finally retire to prop up the pack of cards as it falls. (Is this tax rate guaranteed i.e. it can’t rise above the average tax rate of the period we were working?)

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