Dr Alf is correct in all the instances he has covered but with regard to pensions many of them have proven to be poor value for money because of lack-lustre investment performance and in the UK because Gordon Brown’s abolition of Dividend tax relief.
Many people have, as a consequence, invested in buy-to-let properties, which can at least be seen and touched and because of lack of house-building in the UK, often produce capital appreciation and rising rents. There are issues with repairs, recalcitrant tenants and people like Ed Miliband and the Guardian newspaper who are economically illiterate and who favor tenants over landlords. However it is possible to do better than a pension if you know what you are doing.
The WSJ and Dr Alf did not mention divorce but with 40% of first marriages failing, 75% of second marriages failing, and 83% of cohabit relationships failing, there are further costs to be met, although in a minority of cases, marrying or cohabiting well can sometimes offset these costs.
Where this is not an option because of “pension splitting ” legislation and over inflated court orders to in effect reward former wives, sometimes up to 20 years later as per the ECOTRICITY case, whereby that company’s founder was once a penniless new age traveler, married, divorced 20 years ago, had a child who he now employs in his business and made his fortune. This entrepreneur now faces the prospect having remarried of being taken to court again by his former wife and made to pay again some 20 years later.
Because of court orders splitting working farms and the assets of going businesses to suit the whims of greedy wives, a lot of people simply cannot afford to retire and have to develop multiple income streams when they reach the point when employer manifested ageism stops them re-entering the workforce or face a life of penury.