28 February 2011

Stretching it

Who's a millionaire? Can this be true? The Guardian reports:
The BT engineer on £60,000, the marketing manager on £80,000 and the teacher on £35,000 will all be in the millionaire bracket when they retire after paying only a fraction of the cost.
A teacher on £35,000 will qualify for a £17,000 a year pension with top-ups that can add another £3,000-£4,000 a year. A £20,000-a-year final salary pension with all the bells and whistles would cost between £700,000 and £800,000 to provide. Add a £300,000 house and bingo, you have a millionaire. The BT engineer and marketing manager will easily fit the millionaire bracket and, like the teacher, will have paid a fraction of the cost of purchasing these bountiful assets.

Don't be silly. Qualification for a pension does not convey spending ability equivalent to the size of the investment needed to generate that pension. Nice thought, though ...

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