PPRuNe Forums - View Single Post - BA pilots 'prepared to strike'?
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Old 29th Jan 2006, 12:05
  #278 (permalink)  
norodnik
 
Join Date: Jun 2002
Location: UK
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I think a dose of reality would not go a miss here!!

Firstly, fighting for your "rights" is perfectly acceptable as long as the means justify the end.

History can teach us many things and we have already seen today people who paid their "stamp" throughout their lives being given nothing for it. In short, things change, nothing is for certain.

I myself am 40, have built up a very nice pension pot both from an ex final salary scheme and in a current AVC and money purchase arrangement. I have 20 years to go and certain things have to happen if I am to collect:

1) For my final scheme, my (previous) employer has to remain in business or else I get almost nothing. There are supposed to be rules and reserves, but in reality I would get maybe 20% of what I am currently entitled to

2) The money purchase scheme is in stocks/shares/bonds etc. I am a baby boomer and do you really think there will be enough going around to pay us all when I retire. All that money being cashed in from the government bonds or a sharp fall as we sell stocks to pay the pension. I doubt it will be worth that much in 20 years, and even if it is, a recession or a period of inflation above 4% will quickly reduce my pension to peanuts.

We were all promised pensions and a happy retirement in return for paying in. We now know those sums don't add up for all but the current few and maybe those to retire in the next few years. The outgoings together with health, longer life etc make the promises false.

So, we can bury our head in the sands, bang our drum and scream that its not fair, but we have to lower the expectations and accept what is affordable.

Moving forward, there needs to be a complete rethink on pensions to make them much more meaningful and less risky. Payouts will be that much lower but be reasonable.

Then you can make a decision on whether to invest in a pension, a house, gold or whatever.
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