Scary for Brit pensioners

There’s been some scary pensions data this week for Over-50s thinking about retiring to sunny Spain and stern warnings of a Big Bang if something radical isn’t done…

Pensions are an accident waiting to happen, according to experts in the Channel 4 Dispatches programme,"Who Took Your Pension”

While the McBroon Government financial crisis, poor investment returns and inadequate savings have curbed our ability to finance an ever longer retirement, our expectations remain high. "If the pension system carries on as it is with no real change, it will explode," Ros Altman, governor of the London School of Economics, told the Dispatches programme.

Basic UK state provision is low by European standards, yet occupational schemes which should top that up are in crisis because of increased costs, poor investment returns and our extended longevity. Those who most need to make an early commitment for old age, the low paid, are those least likely to do so.

TUC figures show the proportion of "unpensioned" private sector workers has risen from 54.6% to 62.6% between 2000 and 2008, a period that included the pension raids of McBroon, the spend-thrift chancellor that got it all wrong.

"Low-paid employees are simply not earning enough in their working life to pay for a sensible retirement given that people are living so much longer," independent pensions consultant John Ralfe told Dispatches.

With McBroon borrowed billions to repay, taxes and cost of living increases on the way, Over-50s should be looking at ways of leaving these shores for a relaxed lifestyle on a favourite Brit-friendly Costa.

Ex-pat pensioners along the Costa del Sol were relaxed the other day as they watched the latest McBroon machinations on their Sky News widescreens. They seemed to be enjoying life to the full with Spanish mates and ex-pats from other northern European countries in favourite bars and golf clubs.

The wrecked Pound means they have less pension cash, but living in Spain can cost 30% less than the UK and with a sunnier, relaxed lifestyle to boot. Petrol now costs about the same, but fares on efficient trains are much lower, helping retirees to enjoy the seaside resorts and historic cities.

Housing costs are a fraction of those in Blighty, food and drink costs typically 25% less and heating bills are lower because of the Spanish climate. The health service is highly rated and there are few delays in seeing consultants and getting treatment. Private health payments are lower and dentists plentiful.

The McBroons are likely to be replaced by the Cameroons, but the borrowed billions and train-wreck economy can only be fixed by higher taxes, working longer and lowered standards of living. BBC News shows pension options.

Boot sale property bargains in Spain

There might not be a better time to buy a property in Spain as today could mark the end of the price freefall of key ready new homes. That’s according to 30 developers having a joint boot sale in Malaga, capital of the Costa del Sol, where there are 24,000 sets of door keys being dangled in front of potential buyers…

Desperate real estate firm resorts were offering two-for-one deals on homes, others 30% to 40% discounts off their standard price lists and the developers stretched their imaginations to attract clients with the slogan: “When prices go down, opportunities soar.”

One firm, is even offering a two-for-one deal, although the “deal” requires investing €780,000 — VAT not included — for a four bedroom semi-detached house in the Málaga neighbourhood of El Palo. Whoever buys before the boot fair ends tonight, will receive a “gift”: a one-bedroom apartment near a golf course in Vélez, Málaga.

“Our prices are 20 percent lower than a year ago,” said one sales manager. Apartments that were priced at €400,000 are now selling for €320,000; there are rentals with a buyout option, and months’ worth of mortgage payments thrown in for free.

But one developer boss warned: “The price of new housing will not be reduced further because it already has been reduced on several occasions. People shouldn’t expect home prices to go down 30 or 40 percent, because I’d as soon give the houses away to the bank before doing that.”

Just as McBroon & Co plan to prop up ailing banks in Britain, the Spanish Government whose banks are looking safe, may instead put billions of Euros into the construction sector, which is more important than banking to Spain’s GDP. That would stabilise house prices which may then start to increase again because the country is still the property favourite of Brits and north Europeans.

With that level of support, discounts running out of steam, along with improved specs and other special offers, it could be a good time to snap-up a Costa bargain and specialist website www.propertyinspain.net have quite a few - right up to half-price million euro plus luxury villas.