From: MikeinCamden@aol.com
Newsgroups: uk.politics.misc uk.finance
Subject: Re: UK debt crisis is imminent. What happens to the economy ? the fossil media strikes again...
Date: 5 Jun 2005 13:01:19 -0700
   posting-account=-_yD5w0AAABzGY3xM3W5rJ4s1xAl7Zdy



There already is in effect a variable pension based on savings but not
equity in your home (yet).

The state pension is well below the poverty line. Benefits to make it
up to a liveable level (=A3109.45 a week plus rates and rent) are means
tested. In fact so means tested it is a massive deterrent to savings
for people on low incomes. This is one of the problems being grappled
with by Adair Turner's pensions commission.

Labour loves means testing because it make people feel dependent on it.
But the effect is more and more payouts by the state because saving is
not worth it. And people in poverty because claiming is so complicated.

We wait with baited breath to see what fudge will result claimed to do
two things at once - keep means testing for political reasons while
encouraging people to save to reduce the burden on taxpayers.

Turner's current line seems to be that a basic pension people can live
on would be too expensive.