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BBC: Home owners risk retirement poverty
debtistheft
Posts: 267 Forumite
This just echo's what I have been saying on here for years:
"A new study by Age Concern has revealed alarming new evidence that high house prices will force pensioners into poverty. David Smith of Age Concern stated 'House prices are so high in relation to incomes that people are opting to close down pension schemes and other saving plans in order to channel their disposible income into paying down their large mortgage debts. This will result in a large number of asset rich, cash poor pensioners who will be imprisoned in homes that are falling apart due to neglect'.
The study went on to describe the appalling prospect of poverty facing a generation of people who will have large student debts coupled with large mortgage debts.
'There just isn't the time available for today's generation to be able to pay off student debts, pay off mortgage debts and build up pension savings. Something has to give or we will have a vast number of future pensioner reying on the state pension and age related hand outs', remarked Alan Green a well known pension expert of Cavanagh Pensions Ltd."
The report went on to berate the media for pushing mortgage reduction at the expense of a balanced approach to finances. 'The sort of lifestyle shows such as "mortgage free in 2 years" have encouraged people to pour all their spare capital into a single asset, neglecting their pension savings. How these people think they will be able to afford to maintain their properties, pay for council tax or afford food is completely beyond me' exclaimed Alan Green."
http://news.bbc.co.uk/Pensions/Statepensions%ss2239491751.stm
"A new study by Age Concern has revealed alarming new evidence that high house prices will force pensioners into poverty. David Smith of Age Concern stated 'House prices are so high in relation to incomes that people are opting to close down pension schemes and other saving plans in order to channel their disposible income into paying down their large mortgage debts. This will result in a large number of asset rich, cash poor pensioners who will be imprisoned in homes that are falling apart due to neglect'.
The study went on to describe the appalling prospect of poverty facing a generation of people who will have large student debts coupled with large mortgage debts.
'There just isn't the time available for today's generation to be able to pay off student debts, pay off mortgage debts and build up pension savings. Something has to give or we will have a vast number of future pensioner reying on the state pension and age related hand outs', remarked Alan Green a well known pension expert of Cavanagh Pensions Ltd."
The report went on to berate the media for pushing mortgage reduction at the expense of a balanced approach to finances. 'The sort of lifestyle shows such as "mortgage free in 2 years" have encouraged people to pour all their spare capital into a single asset, neglecting their pension savings. How these people think they will be able to afford to maintain their properties, pay for council tax or afford food is completely beyond me' exclaimed Alan Green."
http://news.bbc.co.uk/Pensions/Statepensions%ss2239491751.stm
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Comments
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This man appears to work for a pensions company.0
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This man appears to work for a pensions company.
Well, it does state in the text that Alan Green works for Cavanagh Pensions Ltd, but he is commenting on the Age Concern article, so Age Concern must have commisioned the report, not Cavanagh Pensions.
I beleive the Age Concern article not only mentions Pensions, but also other savings rpoducts that are also being emptied or completely passed over in order to service these huge mortgages.
Its a worrying prospect though for FTBers who have bought into the whole 'Debt is wealth' idea of home ownership. Idiots.0 -
As a nation the savings habit was lost a long time ago. With the rapid advancement of life expectancy for many. The situation is bound to get worse before it gets better.0
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debtistheft wrote: »remarked Alan Green a well known pension expert of Cavanagh Pensions Ltd."
Shock News:
Pension salesman pushes people to buy pensions at the expense of other things.
Coming up next:
Car salesmen say..... "Buy a new car".“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Shock News:
Pension salesman pushes people to buy pensions at the expense of other things.
Coming up next:
Car salesmen say..... "Buy a new car".
As already mentioned, the report is from Shelter. The pensions guy is just commenting on the report. You can hardly claim that Shelter is biased towards a particular financial produc.i
Though the Bulls on this site will make any outlandish claim if things go against their mantra of 'mortage debt is good', 'savings bad'.0 -
debtistheft wrote: »'mortage debt is good', 'savings bad'.
Really?
Can you point me to a single instance where any the "bulls" have said that?
No, didn't think so.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Shock News:
Pension salesman pushes people to buy pensions at the expense of other things.
Coming up next:
Car salesmen say..... "Buy a new car".
And...
Aberdeen House Owners says house prices increases are beneficial to everyone.0 -
The government need to find an effective and clear method which allows pensioners to release equity from the property. Ideas along these lines have been discussed before.
If nothing is provided, expect to see lots more news articles on 'Watchdog' describing how a vulnerable elderly couple lost their home to one of these debt relief companies. It might be easy for us to say 'these people should wise up', but desperate people do desperate things.0 -
he's sort of right though.This man appears to work for a pensions company.
if a pensioner goes into retirement with debt it's always going to be an issue. it looks like more and more do.
there are alternatives of course but most pensioners would never consider them, that's what he would prefer.0 -
debtistheft wrote: »This just echo's what I have been saying on here for years....
Quite a feat for someone who joined the forum this month.0
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