The new CONDEM coalition government announces that the rising retirement age will be brought forward so anyone six years away from retirement at sixty five will have to work for another year for their state retirement pension.
This tremendous news for low paid manual workers (sarcasm), will be met with despair. Those in the public sector will enjoy higher pension contributions for less pension and will work longer for them.
In the private sector the occupational pension are too often been ended and replaced by less well performing equity linked schemes, I can quote an employee that occupational pension was paid at 5% of his income with his company paid 10% and he got a final salary pension, this replaced with an equity scheme where the employer pays 3.5% and the employee pays 7%, so this news of extending his working life is tremendous news, another couple of years to pay into a less well performing equity based scheme.
Why do low paid manual worker die before white collar professionals?
I heard Nick Clegg argue that it was only fair to erode the public sector pension provision in line with the private sector.
One last thought the on ConDems, the bank levy will collect £2billion a year £8billion in 4 years whilst the corporation tax cuts on the banks will amount to £28billion, gee that sounds really fair, the banks helped cause the financial problems today, yet they get a financial reward of £20billion whilst low paid workers face cuts in services and higher taxes.