Pension funds – Short-term gain – long-term misery – a bribe? A temporary fix?

What a stupid policy.

Let us give everyone access to their pension funds. They’ll love us for it.

Now, while a percentage of the population is able to look ahead and invest their money wisely to ensure their funds cover their needs in old age, and could probably do a better job of it than the pension fund investors, most are either too stupid or lacking in knowledge to do so.

a.

‘Oh look – we can get our hands on thousands of pounds. What shall we do with it?’

‘Shall we invest it wisely or buy a new car?’

‘Oh our car is now old and worthless. Oh. I am old and have no job. Where is the money coming from to keep me now that I’ve spent it all? I know. The taxpayers will have to fork out!’

b.

‘There’s all this money locked up in pension funds. The country is in need. We’ll unlock it. Give it to the masses. They’ll buy lots of new cars and spend it. It’ll stimulate the economy. That’ll help disguise the deficit and make things look good. They’ll love it. They’ll vote for us. Win Win.’

‘What happens when they’ve spent it and have nothing to live off? It’ll cost us a lot more further down the line and all those people who spent their pensions on tat will be buggered.’

‘Some other chancellor will be in office then! Some other government will have to sort out the mess. Who cares.’