Pennies In The Pot

There are some serious questions arising about pensioners and paying for pensions at present which do make easy reading for those who are in that category now, may soon be there or have to think about their longer futures.

The Bank Of England asks questions about the implications of long term low interest rates etc. for defined pension schemes and does not like what it sees.

In the USA there are issues with funding in the states for their schemes and The Teamsters Union is in trouble and putting down a marker for many other similar schemes.

All these pose potential risks for financial markets. In those schemes which are unfunded, such as many government employee ones, there are other questions. So who pays?

The taxpayers, who have their own pension worries? Borrowing money as a sort of Quantitative Easing to justify it on pretending it is keeping the economy going?

But who will lend, there are those who think the government should lend to itself via those schemes etc. and other similar ideas. It will be all very difficult.

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