The Unavoidable Pension Crisis

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“Yeah right” ….. That’s what you thought wasn’t it? “What crisis? I have a good pension!”

Do you? How sure are you?

We only have to look at the recent plight of BHS employees in the UK to know disaster could be waiting for us around the corner.


A recent newspaper article stated –

“Research shows that two-fifths of final salary schemes have been closed to new staff in the past year, and 7 per cent of firms shut their schemes to existing workers, according to the National Association of Pension Funds.

In a separate survey, JPMorgan Fleming revealed that half of Britain's biggest schemes have either been closed entirely or made off-limits to starters. A year ago the figure was one-third.

The investment firm's study of the 350 biggest pension schemes covering 4.6million members also suggests two-thirds of final salary pensions in Britain will be shut within five years.

The closures mean millions more workers may have to retire later or live off less money in their old age.

Firms have shaken up their pension policies in the face of falling share prices and employees living longer.

Ronald Bowie, head of the Institute of Actuaries pensions board, warned that pension funds were £250 billion short of the sum they needed to match potential commitments.

British Telecom yesterday revealed it is to pump an extra £32 million a year into its pension scheme to try to trim a £6.3billion deficit, and Royal Mail - with a £4.6 billion shortfall - will contribute £100 million more a year.

The deficits will shrink, however, if stock markets rise.

Many firms are replacing final salary schemes - usually worth two-thirds of a worker's retirement wage - with defined contributions. But staff often do not realise they need to put in more because employer contributions are usually lower in defined schemes.Final salary models cost firms more and managers find it difficult to predict their long-term value.

Critics say the plight of pension funds has been worsened by Chancellor Gordon Brown's £5 billion annual tax on their profits.The latest figures add to the pressure on the Government to take action.

One idea is to scrap the Government's proposed £1.4 million lifetime limit on pension contributions. Another is to force directors to offer staff the same terms they enjoy themselves.”

Not exactly encouraging reading is it?

My parents were factory workers, so their income was ‘average’ to ‘low’ compared to other employment sectors at the time. Don’t get me wrong, I had a wonderful childhood, and had most of the things children have. But I knew there were times when “things were tough”. Later in life I was to discover that our home was at risk at one point, not through any fault of my parents, it was just unforeseen redundancies and company closures. My parents were and never have been in any debt (mortgage excepted of course) they always saved for anything they wanted and paid in cash.

Today of course I am watching them enjoy their retirement and reaping the rewards of their hard work and ‘thriftiness’. Plenty of money in the bank, no mortgage or debts and holidaying on a regular basis.

To the point I’m trying to make – 

My grandparents options for retirement were save some cash and they will get a state pension.

My parents options were saving cash and paying into a pension scheme and they will get a state pension. Other options or investments were few and far between, and generally for those with a higher income.

My options …….

1. Save in cash – Yes, I do

2. Pay into a private pension – Yes, I do

3. Get a state pension – Yes, I will at age 67

4. ?????

In the 21st century all sorts of other options are available, property, stocks and shares – the options are many. Let’s examine my option list –

1. CASH – That’s a safe bet you’d think? Wrong! We all know what a few thousand pounds, dollars or euros buys today, will buy a LOT less in 20 years – inflation will devalue our cash.

2. PENSION – Again, safe, they’ve been around a long time? Wrong! You only have to refer to the beginning of this article!

3. STATE PENSION – Safe, has been provided for a long time? Wrong! Who knows what will happen BEFORE we retire, these days nothing can be guaranteed.

4. ?????

What can I do with number four? What options am I left with? I need something that qualifies all the following –

- Offers protection against inflation and currency reform
- In a time of crisis is a stable investment
- Has Intrinsic value which is not reproducible
- Global demand is higher than its supply
- Financial security for myself and my family

You know the answer ….. 24 KARAT 999.9 PHYSICAL GOLD

Let’s call it my “Gold Pension for my Golden Years

Karatbars International makes gold accessible and affordable to EVERYONE by allowing the masses to acquire it ONE GRAM AT A TIME. Physical 24kt gold increases 12% per year on average – over 400% in the last 12 years!

Even if I was to not sell my physical gold at retirement, what an amazing legacy I could leave my wife and children!

If I save 2 grams of gold per month from now until I am say 58 (20 years from now) I would have 480 grams of 24kt pure gold, or 15.4 troy ounces.

At the time of writing this blog, 15.4 troy ounces of gold is £14,900 / $19,202 / €17,612

What about in 20 years time? Let’s assume 12% growth (as has been the last 10 years) and as of today I hold 15.4 troy ounces of gold. In 20 years time I could have .....

£143,729 - $185,228 - €169,890

Now what would your £14,900 / $19,202 / €17,612 in the bank be worth?!

Let's say at best you got an 8% return (presently VERY unlikely!)

£69,448 - $89,499 - €82,088

I don't think I need to continue!

My parents have completed their “Bucket List” of places to see before they are too old to travel afar or their time is over – Niagara Falls, The Grand Canyon, Graceland (big Elvis Presley fans), Las Vegas to name just a few.

These days my Dad can be found tending his incredible vegetable patch and keeping the lawn trimmed to within an inch of its life, while keeping the flower and shrub borders weed free, or at the local Bingo with my Mum, who spends her time playing card games on the computer, reading or keeping their amazing bungalow to show home standards! Usually every few weeks they depart for a short break somewhere in the UK no matter what time of year – being retired is pretty hard work you know!

Unsurprisingly since starting with Karatbars, my Dad is now also regularly acquiring the 5 gram Karatbars cards. He reckons “I’ve easily got another 10 to 15 years left in me so should hopefully see a good return on them!” ….. I just grinned, he’s a smart (and funny) man.

I’m very happy for them, they are having the kind of retirement anyone could wish for …… what will your retirement hold? Maybe it’s time to review it?


Hello, I’m Alan Butler.


I simply want to show how physical 24kt 999.9 gold ownership is now affordable for everyone through Karatbars International, securing your cash now and for the future in physical gold. Opening a customer account is FREE and without obligation.


Karatbars can also provide you with a regular residual income by registering as a business partner – again this is FREEand without obligation.

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Guest Monday, 20 May 2019