Tuesday, March 25, 2014

Pensions: if you think can be trusted wth your own money, sign here

The response of the Labour party, and some of Britain's establishment, to Gerge Osborne's pension reforms was incredibly revealing.

There are two reasons why I think he was absolutely right to say that nobody should be forced to buy an annuity. The first is that, as the saying goes, one size does not fit all, and the fact that an annuity may well be the right choice for many people does not mean it should be imposed on everyone.

The second is that denying people a choice was a guaranteed recipe for more bad deals being provided. If people have more choices to go elsewhere, there will be more incentive for those who provide annuities to offer a good deal or risk seeing their customers go elsewhere.

Pensioners tend to be extremely careful with the money they have spent years saving. Comments from one or two Labour MPs and from some other "talking heads" about whether people could be trusted with their own money woud have been insulting and patronising even if they were coming from people with an unblemished track record of superlative management of other people's money.

Considering what the record of all British governments and Labour ones in particular is actually like for stewardship of other people's money, this is beyond a joke.

Dare I mention

 * Selling off gold reserves at rock bottom prices
 * Bank regulation
 * Losing data pencils with half the entire country's bank details

And the people who brought you these and other disasters think they can manage pensions money better than the pensioners themselves can ?

Sajid Javid MP, Financial Secretary to the Treasury, has some further thoughts on this, see below:

"It's now clearer than ever: Labour don't have a plan.
"In the Budget, George Osborne set out important long-term changes to help secure Britain's future and build a stronger, more competitive economy.

"And Labour's response? Confusion, disarray and dithering.
"Take their response to our measures to give people more freedom and flexibility over their pensions.
"First, Labour MPs said that people couldn't be trusted to spend their own money sensibly. Then they said they backed our plans. Then they said they weren't sure.
"Labour don't know where they stand on our plans to give people more security in retirement.

"But today I'm asking you to show your support for these important plans by signing our petition.
"The contrast is clear: while Labour dither and flail around for ideas, we are working through our long-term economic plan to secure Britain's future.
"Back our pension plans today and help give millions of people more security in retirement.
Sajid Javid signature
Sajid Javid MP
Financial Secretary to the Treasury"

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