As I often say, people need financial planning more than ever in today’s world. Pensions are an easy target for Government to reduce expenditure, even though it just stores up a massive problem for the future.

Yesterday the Labour party in the UK said that if they regain power they too will cut pensions. The reality is that pensioners should not just fear Labour. Worryingly, in one way or another, all political parties seem to have them in their sights and are trying to find ways to try to reduce pensions and the pensions budget. The popular perception of armies of rich pensioners is a myth. Yes, there are some very well-off older people, but the vast majority of pensioners do not have high incomes. Pensioner living standards are still below other groups, but by less than before, and it is no longer the case that being a pensioner is more likely to mean living in poverty.

Means testing is not the answer for me, as again, it would discourage people for taking responsibility for their own pensions and that surely is what must happen. People have to accept that in today’s world the welfare state isn’t working and can’t work when we have an ageing population. The only answer is to educate people on financial planning and help them take responsibility for their own financial future.

Nigel Green devere group

Blog written 11th June