January 25, 2008

Old age incentives

Apparently two thirds of people have no plans to put money aside to pay for the extra care they will need in old age. The survey that reveals this factoid comes from a group of charities campaigning for more government money to be spent on themselves old age. However there is a ring of truth to it, why would any rational person save for their retirement based on what the government is currently doing? If you save you will have everything taken from you. If you do not save you will have everything given to you. It is therefore better not to save, and to spend the money now, than to try and put something away in the knowledge that it will simply be confiscated later in order to pay for those that didn't.

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