UK Company pensions deficit deepening
Wrote the Daily Telegraph at the weekend. UK companies are ‘staring into an abyss’ of bleak void as the government are struggling to find a way to plan pensions schemes with an increasingly growing ageing population.
As the Telegraph said the fact that ‘mortality rates are improving at a rate of five hours a day’ is good news for the country but it does not help to ease the pressure on pension schemes as people are living longer so they require more funds to sustain them.
The Government have launched an auto-enrollment scheme to try help solve the problem. The truth is I think everybody is missing the point. People need educating, they need to understand the huge pension crisis that is affecting the world.
Trying to auto enroll people won’t help, they will I believe all too often withdraw from the scheme themselves unless they understand the reasons that the pensions crisis is occurring and why the need to save.
Good financial planning is needed to stop people ending up old and poor.