Pensioners income drop "trade off" for good of the economy

[dutchman]

Pensions minister, Steve Webb, admits that pensioners will have to suffer for the long-term good of the economic recovery.



In an interview with Saga, Pensions Minister Steve Webb admitted that pensions income being decreased as a result of quantitative easing, may have to be a necessary evil for the greater good of the economy.

The Government's measure to speed economic recovery has led to a decrease in the rate of pension income an annuity pot will buy. Low interest rates coupled with high inflation and a volatile stock market have left pensioners with significantly less buying power than just five years ago.

Mr Webb admitted that there was “an issue about volatility, not knowing what you are going to get [and an issue] about poor returns.”

He said that the pensioners receiving a lower income as the result of the fiscal measures was a "trade off".

"There is clearly a short and not so short term hit in all of this, I fully accept that. Low interest rates and quantitative easing have their impact but if what that does is get the economy on a firm foundation and the economy is growing and we get prosperity, all pensions ultimately depend on that and that’s the trade off really."

Ros Altmann, Director General of The Saga Group said that pensioners would be made to suffer for the rest of their lives as the result of a "temporary" economic measure.

"If you are buying an annuity now, the income will be set for the rest of your life. I wholly disagree with quantitative easing – and not just because of the effect that it has on pension funds and pensioners.

"It creates inflation, distorts markets and impacts consumer confidence," she said.

Ms Altmann said that she did not think that ministers realised the lasting impact that quantitative easing would have on the baby-boomers retiring now and in the near future.

"Pensioners are being targeted because somehow ministers thing they have had it too good. I don't think they realise the full impact of their actions. This will not be a short-term income cut," she said.

[rebbonk]

Face it, pensioners only have short term. Slowly but surely, we'll be killed off. Many are already having to make the choice between heat and eat.

Webb should hang his miserable head in shame at punishing those that made this country. It's the politicians that betrayed us and ought be tried for treason.