Pension Crisis 2012 – What you need to know.

Pension crisis 2012

So, will the pension crisis improve or worsen this year? The pension crisis has already adversely affected millions of people across the UK.  The pension crisis 2012 will hopefully be the year when it finally dawns on people that unless they take action they will…

Have to work all of their lives

AND

Retiring at 65 will be an aspiration, not the norm.

Why the pension crisis 2012 is here to stay

Life expectancy

Life expectancy has increased dramatically since the State Retirement Pension was set up almost one hundred years ago. Many people nowadays still expect to retire at 65 and live for a good number of years beyond that. This is unsustainable and the state pension, as pathetic as it is, cannot be maintained in its current form. It is effectively a giant Ponzi scheme.

Inflation

Pension Companies invest your money in a variety of ways, but the vast majority is invested in Stocks and Bonds. Unfortunately for the people who rely on a pension as their only retirement strategy, these forms of investment are producing miserable results and inflation is reducing returns still further. If you’re lucky, your pension might be giving you a return of 3% (The FTSE 100 was worth more 10 years ago than today) However inflation is tracking at over 5% that means a return of -2% In effect you are losing money because of inflation.

Greedy Pension Companies

Even with the poor returns, one thing you can be sure of is that the pension companies won’t forget to take their huge fees, further eroding your chances of a financially secure retirement. The traditional pension model doesn’t work but pension companies won’t tell you this, so it’s up to you to educate yourself and take steps to secure your retirement income.

Property Investment offers you another way but don’t just take our word for it, research what we have to say. Follow our blogs, join our Facebook page and read through our free email course by signing up below.