Rewarding success?

[Capt Lightning]

On another seniors' forum, was a post with a lot of government bashing, for being unsympathetic to the less well off. The UK govt. has recently announced savings bonds for citizens aged 65+ with a slightly better interest rate than the main banks. This drew shouts of govt. looking after 'rich pensioners' and implying that most people couldn't afford to save. This was countered with the argument that those who had saved were getting the worst deal of all with virtually no benefits and increasing state pension age.

And so the arguments went back and forth, so I wanted to ask, "where you live (I'm thinking mainly of USA, Australia etc.) is earning a good wage and saving for your future, recognised as a positive attribute that has associated benefits" -- OR -- "if you have saved some of your hard earned cash, are you told to look after yourself and stop complaining (as seems to be the case in the UK)" ??

 

[Josiah]

One reason I've enjoyed Senior Forums is that both the political left and right are generously represented. In the USA the political divide is glaringly apparent with the right focused on reversing most programs that provide public benefits of any sort and eliminating any sort of regulation that might inconvenience private enterprize. Just following the news every day has become emotionally painful for me and I find myself limiting my readings to bloggers with whom I have some sympathy. This is not a healthy way to stay current I know, but I'm just not as tough as I use to be.

 

[ClassicRockr]

I have "sympathy" to those that REALLY need it, but way to many people today create their own problems and I have a really hard time being "sympathetic" towards those people.

I know, without a doubt, that I should have saved money for retirement "way back when", but that was really hard to do with the hourly wages I was making. But, that problem with the "hourly wage" was of my creating from not doing the right things in the first place.

 

[911]

To answer your two questions.....1. Yes....2. No IMHO.

 

[Blaze Duskdreamer]

I think so. I mostly wasn't able to save as I was a single mother living pay to pay with no child support from her father but I always worked worked. So I built up pensions and am now living off a pension from my former employer and Social Security and I'd have to say yes that is admired. And also that I am looked up to for having worked instead of bumming off welfare. Hell, I feel good about that and am quite proud of it. I supported us. We might have struggled when she was growing up but I took care of us. I truly feel better about myself for it and think most would do better to strive to be independent. Of course, I have empathy for welfare moms because I was often treated like one just because I was a struggling single mother. People often had to be told I wouldn't touch welfare with a 10-ft. pole and sometimes, even then, they didn't hear it. They saw struggling financially single mother and assumed I was on welfare. That pissed me off because I was proud of taking care of my daughter and myself.

Your second question puzzles me and if that's what's being done there, I can understand the anger. Why should those who have money -- savings -- be given handouts from the government? I'm not huge on government handouts period but it makes utterly no sense to hand out government money to people who don't even need it because they have their own. I get fed up with things here in the states like criminals being handed college educations, etc. and often say where's the reward for being good but actually being good is its own reward. You earned what you have and you don't need to depend on the government for it. I am just totally confused by the concept of your government giving out money to those with savings. Just as I say to someone on welfare with a flashy car sell it and ride the bus here, I have to likewise say live off your savings to those have got and think that savings should be considered before being granted public money. You have to remember that when money comes from the government it doesn't really come from the government but from your fellow citizens who are being taxed for it. Why should they have to support you? Especially if you have savings!

That said I do believe everyone should have a pension in their old age or if they are disabled. I think it is horrendous here that people die waiting for decisions on their Social Security disability hearing. But I feel that is earned by the years you put in being an honest citizen and working for a living, during which you were taxed and that if you were too disabled to ever work, you should be taken care of instead tossed to die in the street. It's just your turn to pull from the pool instead of putting into it.

One reason I've enjoyed Senior Forums is that both the political left and right are generously represented. In the USA the political divide is glaringly apparent with the right focused on reversing most programs that provide public benefits of any sort and eliminating any sort of regulation that might inconvenience private enterprize. Just following the news every day has become emotionally painful for me and I find myself limiting my readings to bloggers with whom I have some sympathy. This is not a healthy way to stay current I know, but I'm just not as tough as I use to be.

Tell me about it. I too have gotten so I won't watch the news! I'm glad we have both left and right but I hope we also have some centrists like me. I'm labeled liberal a lot but I'm really a middle of the road kind of person and am real anti-some leftist big-button issues.

 

[Capt Lightning]

A very comprehensive response Blaze. The problem as I see it is... before the financial crisis, people who had savings could get a good interest rate, so having savings was good. For retired people, this was important to supplement their pension(s).
Now, interest rates are so low that savings are essentially losing money.

In brief.... State pension is the same for all, no matter how much you have contributed.
additional benefits are restricted depending on income and savings.
Interest rates are low, so those who have relied on interest from savings, are now having to draw down.

Ironically, it is the very people who might naturally support the Conservative government, are the ones who are being hit hardest.

 

[Josiah]

Capt Lightning,

As an American I struggled to understand the very complex issues underlying the recent Scottish independence referendum. I never felt I got anywhere near forming an opinion but I still was very interested in the outcome. I would be interested in learning how you voted and why you voted the way that you did.

 

[Blaze Duskdreamer]

A very comprehensive response Blaze. The problem as I see it is... before the financial crisis, people who had savings could get a good interest rate, so having savings was good. For retired people, this was important to supplement their pension(s).
Now, interest rates are so low that savings are essentially losing money.

In brief.... State pension is the same for all, no matter how much you have contributed.
additional benefits are restricted depending on income and savings.
Interest rates are low, so those who have relied on interest from savings, are now having to draw down.

Ironically, it is the very people who might naturally support the Conservative government, are the ones who are being hit hardest.

Interesting and now it makes more sense. I'd have to understand your system better to really form an opinion but that clarifies it. Yes, if you're relying on savings, you want to leave the principle intact and use the interest earned. I can see that someone making six figures is not going to want to live like me in retirement even though I'm considering how I'm living currently quite good.