A Tory think-tank headed by Ian Duncan Smith has put forward serious proposals for the government to raise the current UK pension age of 65 to 70 by 2028 and then to 75 by 2035. Ironically, the think-tank that has put forth this proposal is somehow called the Centre of Social Justice. It would be fair to say that for ordinary British people who have worked hard and have paid their tax and National Insurance contributions all their lives, waving goodbye to the idea of being able to sit back and enjoy their retirement years, formerly known as the golden years – doesn’t quite seem to echo the type of policy that you would expect to be produced by a group of people who proclaim to be about striving towards achieving “social justice.”
Whilst this obviously may not necessarily happen, it just serves us a reality check and it further highlights the importance of how we plan to secure our financial futures, to ensure that we are able to enjoy our retirement. It places an obvious need for people to invest sensibly by seeking stable and secure asset classes that prioritizes the preservation of wealth and are historically proven to achieve steady growth that is sustainable in the long run.
Hard assets such as real estate, along with hard commodities such as gold for example, are proven to be highly effective vehicles for preserving wealth and achieving steady long term growth. Investing is a marathon, not a sprint, and to be able to secure anything between 2 and 6% acts as a very positive return on your hard-earned capital. To attach high levels of risk against the quality of you and your family’s financial future is blind irresponsibility.
With serious proposals like raising the pension age from influential think-tanks floating around government decision makers, I think it would be a little naive at best for us to sit back and have confidence that our government is going to happily provide us with a nice and comfortable retirement. This really does highlight the need for people to create their own security and to be in control of shaping their own futures, and the most responsible and effective way to do this is by investing into markets that are driven by hard assets, and real estate is the proven number one market that generates long-term financial security.
Baroness Altmann has been an outspoken critic of the proposal by Ian Duncan Smith’s “Centre of Social Justice” think-tank. She’s stated that:
“Forcing Britons to work until their mid-70’s may help to boost the economy by £182 billion a year, but to me the idea is chilling and immoral. It is an outrageous betrayal of people who have worked hard, paid their taxes and made their National Insurance contributions in the expectation that they will receive at least a basis income so they can retire, rather than being forced to labour until they drop.”
We also share these sentiments to the proposal, and it is important for people to understand that nothing is for certain, particularly the idea that pensions are guaranteed to serve to provide what we think or hope they will during the latter years of our lives. In light of this understanding, it is time for people to look beyond the fantasy of getting rich quick, and to focus upon investing wisely with patience, which will serve people’s long-term goals far better.