Wednesday, 7 April 2010

Pension Tax Grand Theft

Open letter to Alison McGovern

Labour Candidate for South Wirral Constituency.

Dear Alison McGovern

You recently sent me a letter headed "Standing up for Pensioners - Safe in Labour's hands".
I am deeply offended by this head line as the fact is that by taxing pension funds Gordon Brown has robbed all those people and organisations who had sought to provide benefits for themselves and their employees. A despicable act which will cause damage and poverty to many long after Gordon Brown has departed this life.

Take my own case, I am drawing a pension into which I paid the contributions , but as a result of Gordon Brown's policies this pension is smaller than it would have been hence reminding me on a regular basis of this despicable act. I also receive a small pension from a former employer, although this has been well funded in the past, due to the introduction of tax on funds this has meant that future actuarial calculations now hold the possibility of the fund running out of money and having to be rescued at some point in the future.

Interestingly it is well known that the size of the hole in the pension funds directly equates to the shortfall in pension schemes. What a pity that this money has been wasted, producing no added benefit for those who will be retiring in future years.

I am unable to retire as I have to continue providing an income to supplement my small pensions, which disqualifies me from receiving pension credits. As part of my on going work I come into contact with quite a number of self employed people in the age bracket 20 to 45. I did spend 20 plus years in the pension industry; prior to Gordon Brown's theft these people would have looked at the benefits provided by investing for the future in their own pension arrangements. Now they have not the slightest interest in investing into pensions as they see no advantage and indeed with the introduction of tax credits, their view is that they will be better off by making no provision.

Whilst there are many other knock on side effects which have resulted from the one decision to rob the people the sad fact is that the future effects for the economy of this country is nothing short of a financial disaster in the making.

In closing I suggest that you should be ashamed to be a member of the Labour party.


Alan Hollinshead-Jones.

Should you wish to respond my e-mail address is