It’s not quite going nuclear. But chancellor George Osborne has played the “pensions” card in the Brexit debate. He’s said that younger individuals would be “between £223 and £335 a year worse off in retirement.” That’s if you’ve got £20,000 in pension savings and you’re contributing 8% of your earnings into a pension fund between 2016 and 2030.
He saved his best work for the over 65s, though. He warned that over £300 billion in pension assets for those over 65 could be destroyed by a “severe market shock.” He reckoned it to be a £32,000 hit to your nest egg, in a worst case scenario. A “moderate shock” would wipe out around £18,000, he claimed.
Chancellor’s own political future
If it’s not going nuclear, it’s certainly a “scorched earth” tactic. According to the chancellor, leaving the EU would pretty much destroy everything in Britain. The economy, your retirement, trade, and perhaps the chancellor’s own political future. Just in case anyone missed the point, the chancellor elaborated. He said:
Much of the [Brexit] debate so far has focused on the potential economic fallout of a vote for Leave for those now in work, in terms of the impact on their jobs. But it’s important that pensioners understand what’s at stake for them too on 23 June. Pensioners who have worked hard all their lives deserve dignity, security and certainty in retirement. That’s what we all hope for and what any responsible government should seek to provide.
A “responsible government” has had the Treasury publish three separate reports on the economic consequences of Brexit. All based on dubious assumptions. And all with exact figures designed to show you precisely how much voting “leave” will cost you 10-15 years from now. And the last of which was released just hours before the three-week period in which the government is obliged to go silent before the referendum.
If “Leave” wins, George Osborne won’t be to blame. He’s effectively thrown his political career down the drain in an effort to support Britain’s EU membership. The only logical conclusion you can reach is that he really believes it’s in Britain’s best interests to remain. We’ll see if his countrymen agree in about three weeks.
Category: Brexit