Seems like the fruits of retirement are slipping away daily. Government and business do not have a firm solution in site. Are approximately 3 million 'retired' people taking away the dreams of the current working population of perhaps 10's of millions?

Pensions face £130bn black hole - report

EXPERTS say private companies are £130 billion short of the figure they need to finance British pensions.

A study by the Association of Consulting Actuaries released today says most firms fear it could take more than a decade to recover from the deficit.

The ACA's 2005 Pension Trends Survey involved interviews with 392 companies which collectively said they had a £130 billion black hole relating to more than 2.8 million members.

ACA chairman Adrian Waddingham said: "For the public's sake, the Government simply cannot afford to make any further mistakes in its approach to pensions."

Mr Waddingham said the association hoped the Government would not move ahead with "half-baked" proposals ahead of the Pensions Commission report, expected at the end of November.

He said: "What would be disastrous is if the Government moves ahead with its own half-baked `pet' ideas - and there are signs that it may be tempted to - in advance of the report's publication."

Decline

Mr Waddingham said there had been a "rapid decline" in the number of workers who are given the chance to join any form of company pension scheme.

He said: "The policy mix must be wrong for this to be happening. 68% of employers say present policies to promote occupational pensions are not moving in the right direction.

"Our survey has shown the immense efforts being made by many firms to meet the cost of pensions by way of larger contributions - costs that have increased far beyond what was expected when they set up their schemes. Increasingly, we are worried that the regulation may place further harsh funding pressures on employers, thereby speeding up scheme closures."

He added: "There is considerable agreement across the pensions industry on what needs to be done to improve state and private pensions.

"Consolidation of the state pension at a higher level, a move over time to later retirement ages and incentives to boost private pension savings are policies voiced by many organisations."

Middle generation the life 'savior' for the young and old

http://www.manchesteronline.co.uk/me...eneration.html

'Cash trap' for middle generation

MIDDLE-AGED couples are being financially stretched, having to help both the older and younger generation to make ends meet, new research shows.

One in five people said they had stepped in to provide regular support for children aged between 18 and 25, while 13 per cent expect to have to help out their parents during retirement.

The majority of those in this middle generation said they thought life was much harder financially for young people than it was for them, according to the Portman Building Society.

Burden

More than three-quarters said they thought house prices were too high for young people, while 57 per cent thought the cost of higher education was a burden for them.

At the same time, 20 per cent of people whose parents had yet to retire did not think they would be able to support themselves once they had given up work, and two-thirds of these thought they would have to step in and help.

Around 88 per cent worried that their parents would not have enough income from their pension, with 52 per cent worried about rising council tax bills and 19 per cent concerned about the cost of care homes.

A Portman Building Society spokesman said: "The financial pressures of modern life are creating a potential double whammy for the middle generation."