Torygraph Stirs the Spoon on Our Pension Pots

Our friends in the Daily Torygraph were happy to see the banks saved from collapse by the Labour government; after all they have most to lose in this system. What they are not happy with is the additional borrowing costs for doing this which have reached a staggering £1.4 trillion for the banks alone.

The Office for National Statistics has only recently published its estimate of the size of the bailout. The non-bank debt caused by the recession was £889bn but the debt incurred by the bailouts is an eye watering £1,434bn, close to 100% of GDP:  http://www.hm-treasury.gov.uk/d/psf.pdf

This is equivalent to £25,000 for every person in Britain. But the pain is raining down more on us, pay cuts, job losses and the Tory led government trying to steal £4 billion from our wages to pay back the debts through by increasing our pension contributions from 2012.

With no headroom for tax cuts because of the these debts - which is what the Torygraph wants - who is in line for bearing the costs? Well not the Bankers that's for sure.

You've guessed it - public sector pension schemes members and pensioners. Hoping that the government will cut the contributions to our schemes and benefits so there is more for tax cuts for the rich. http://www.telegraph.co.uk/finance/personalfinance/pensions/8317446/What-is-a-public-sector-pension-worth.html

Pedalling the same old lies and false comparisons between public and private sector schemes they make the claim that our pensions are worth far more.

We know different, and we know that the Independent Public Sector Pension Commission has rejected a race to the bottom, as much as it would be gratefully received at Torygraph Towers.

Increases in executive pensions come at a time of tumbling payouts for most workers, who have seen the value of their occupational pensions slashed in recent years. Last year a TUC survey found Britain’s top bosses will retire on an average pension of nearly £4,400 a week. Compare this to local government workers who can expect an average yearly pension of just £4,000, which drops to £2,600 for women.

Many guaranteed schemes have been closed to new employees and companies are increasingly shutting their schemes altogether to cut costs. In most cases employees are switched into cheaper arrangements, which is exactly what Tories, Lib Dem's and their lackeys want to happen to us. Most companies pay about 8% to 9% into personal pension style arrangements, defined contribution schemes as they are technically known, compared with the 20% to 30% paid into final salary schemes.

And what about those with no company pension, no savings and a large mortgage, these workers will be forced to work until they drop, or retire on a state pension currently worth less than £100 a week!

This issue is not about pensions it's about how our economy is based upon supporting a bankrupt and unstable finance sector. Why did we borrow nearly £2 trillion pounds and spend it on the banks and the costs of recession when we could have spent the money on public services and decent living standards for our pensioners?

These are political choices not forces of nature!