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Austerity: the elderly can be part of the solution to this economic mess Austerity: the elderly can be part of the solution to this economic mess
(3 months later)
Will Hutton is rightly appalled by the stupidity of George Osborne and the coalition's economic policies, which even Vince Cable and the Lib Dems are now beginning to realise are taking us in an accelerating downward spiral ("Blame austerity, not old people, for the plight of Britain's young", Comment).Will Hutton is rightly appalled by the stupidity of George Osborne and the coalition's economic policies, which even Vince Cable and the Lib Dems are now beginning to realise are taking us in an accelerating downward spiral ("Blame austerity, not old people, for the plight of Britain's young", Comment).
But we old people must, somehow, be part of the solution, if only for self-preservation, since even Labour is now saying it will cut universal benefits such as winter fuel allowance. A re-elected Tory government will undoubtedly look to rich older people for the next cuts, as they continue deepening the hole they are creating, blighting the lives of all of the next generation.But we old people must, somehow, be part of the solution, if only for self-preservation, since even Labour is now saying it will cut universal benefits such as winter fuel allowance. A re-elected Tory government will undoubtedly look to rich older people for the next cuts, as they continue deepening the hole they are creating, blighting the lives of all of the next generation.
Most older people who have been buying houses over their lives, will now be sitting on a major asset. So the question is: how do we recycle this massive amount of equity? Gordon Brown was attacked when he mentioned the possibility of increasing inheritance tax, but this is, truly, dead money for many of us, who have reasonable pensions and kids who are independent already.Most older people who have been buying houses over their lives, will now be sitting on a major asset. So the question is: how do we recycle this massive amount of equity? Gordon Brown was attacked when he mentioned the possibility of increasing inheritance tax, but this is, truly, dead money for many of us, who have reasonable pensions and kids who are independent already.
I would certainly like to do something with the paper fortune I am sitting on, but I don't want to wait for George Osborne or his successor to get it when I die, I'd like to find a viable use for some of it now. Any ideas out there?I would certainly like to do something with the paper fortune I am sitting on, but I don't want to wait for George Osborne or his successor to get it when I die, I'd like to find a viable use for some of it now. Any ideas out there?
David ReedDavid Reed
London NW3London NW3
Many hundreds of thousands of pensioners, including my wife and me, have seen the value of their pensions fall substantially in the past five years. Those whose pensions are based on "income drawdown" have suffered because the government changed the drawdown rules retrospectively.Many hundreds of thousands of pensioners, including my wife and me, have seen the value of their pensions fall substantially in the past five years. Those whose pensions are based on "income drawdown" have suffered because the government changed the drawdown rules retrospectively.
This change has now been reversed but the income lost cannot be recovered. More significantly, pension funds plummeted in value after the banking crisis and annuity rates have declined steeply. At the same time, the government has pumped money into various schemes intended to stimulate lending to businesses and house purchasers, with calamitous reductions in interest rates for savers.This change has now been reversed but the income lost cannot be recovered. More significantly, pension funds plummeted in value after the banking crisis and annuity rates have declined steeply. At the same time, the government has pumped money into various schemes intended to stimulate lending to businesses and house purchasers, with calamitous reductions in interest rates for savers.
Traditionally, pensioners have relied on income from savings to boost their pensions. Not only are we not "prospering", we are actually funding in large part Mr Osborne's "debt reduction plan" because the return on most investments is failing to keep up with inflation with the inevitable result that the real value of capital is being eroded.Traditionally, pensioners have relied on income from savings to boost their pensions. Not only are we not "prospering", we are actually funding in large part Mr Osborne's "debt reduction plan" because the return on most investments is failing to keep up with inflation with the inevitable result that the real value of capital is being eroded.
Colin BoylettColin Boylett
KingtonKington
HerefordshireHerefordshire
I am 76 and it is my generation, and the generation that we spawned, who have allowed, over the past 30 years or so, a political ethos to flourish that has largely followed the mantra of "I, me, myself, we are my favourite people" and which has led to the present mess. Right now politicians of all hues have come to realise that universal pensioner benefits cannot continue and pensioners are up in arms.I am 76 and it is my generation, and the generation that we spawned, who have allowed, over the past 30 years or so, a political ethos to flourish that has largely followed the mantra of "I, me, myself, we are my favourite people" and which has led to the present mess. Right now politicians of all hues have come to realise that universal pensioner benefits cannot continue and pensioners are up in arms.
My income from all sources amounts to roughly average earnings. My house is debt free. That doesn't make me rich but I am certainly not poor. The free bus pass, free TV licence, free prescriptions, free eye test, winter fuel allowance etc are welcome but I do not need them. The one thing that can really impoverish me would be residential care, and three cheers if all this other stuff was cut off and that issue was properly dealt with.My income from all sources amounts to roughly average earnings. My house is debt free. That doesn't make me rich but I am certainly not poor. The free bus pass, free TV licence, free prescriptions, free eye test, winter fuel allowance etc are welcome but I do not need them. The one thing that can really impoverish me would be residential care, and three cheers if all this other stuff was cut off and that issue was properly dealt with.
Of course pensioners struggling on the basic pension and/or not in an acceptable state of good health need additional financial support. Are universal benefits really the way to do this?Of course pensioners struggling on the basic pension and/or not in an acceptable state of good health need additional financial support. Are universal benefits really the way to do this?
Finally, I'm fed up with my contemporaries whining on about "... we worked hard and paid in all our lives" etc. Yeah. Me too. And were we not unbelievably lucky to be able to do that? Fat chance our grandchildren having that luck, poor devils. My first house purchase in 1959 cost about two and a half times my then salary of about average earnings. Today the same house would be closer to 10 times average earnings and it wasn't austerity that did that.Finally, I'm fed up with my contemporaries whining on about "... we worked hard and paid in all our lives" etc. Yeah. Me too. And were we not unbelievably lucky to be able to do that? Fat chance our grandchildren having that luck, poor devils. My first house purchase in 1959 cost about two and a half times my then salary of about average earnings. Today the same house would be closer to 10 times average earnings and it wasn't austerity that did that.
Mike TurnerMike Turner
Lytham St AnnesLytham St Annes
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