at the moment the RPI is in negative territory. Now we know from the evidence that costs for pensioners are actually more than they are for some other groups of society. We need to be told now, I repeat now, what will happen when the MPs return from their long recess what they propose to do about pensions in the event that the RPI stays below zero. Mind you with the PM saying that zero is an increase then he is preparing us for a zero percent rise.
I suppose that we ought to be glad that pensions will not be reduced. As for the idea that in future pensions will be linked to wages then just look at what is happening to wage rates as the recession gets deeper, despite the stock exchange rises. It will fall you know, this is just like 1928/29 all over again. The stock market in America was in dire straights in 1928, it was baled out, the same today the market has been baled out by quantitaive easing, only soon the money will be gone and what will there be to show for it.
Consider this, if the stock market is rising then somebody has to be selling to meet the needs of the purchasers. So, why would you sell if you thought that the market was going to rise, you must expect a fall otherwise you would stay in the market. Look at what you Local Authority is doing with their pension fund assets, they are investing, they always do things at the wrong time, it doesn't matter if they lose money on their investments because the taxpayer will pick-up any shortfall.
Hold on to our hats. By the way this should not be taken as the views of an expert but purely and solely the musings of an iterested bystander, this is not financial advice and should not be seen as such...all the usual disclaimers.
Finance
at the moment the RPI is in negative territory. Now we know from the evidence that costs for pensioners are actually more than they are for some other groups of society. We need to be told now, I repeat now, what will happen when the MPs return from their long recess what they propose to do about pensions in the event that the RPI stays below zero. Mind you with the PM saying that zero is an increase then he is preparing us for a zero percent rise.
I suppose that we ought to be glad that pensions will not be reduced. As for the idea that in future pensions will be linked to wages then just look at what is happening to wage rates as the recession gets deeper, despite the stock exchange rises. It will fall you know, this is just like 1928/29 all over again. The stock market in America was in dire straights in 1928, it was baled out, the same today the market has been baled out by quantitaive easing, only soon the money will be gone and what will there be to show for it.
Consider this, if the stock market is rising then somebody has to be selling to meet the needs of the purchasers. So, why would you sell if you thought that the market was going to rise, you must expect a fall otherwise you would stay in the market. Look at what you Local Authority is doing with their pension fund assets, they are investing, they always do things at the wrong time, it doesn't matter if they lose money on their investments because the taxpayer will pick-up any shortfall.
Hold on to our hats. By the way this should not be taken as the views of an expert but purely and solely the musings of an iterested bystander, this is not financial advice and should not be seen as such...all the usual disclaimers.