Is the welfare state system broken, and if so, what are you going to do to fund your retirement and elderly care?

When I was growing up in London there were different waves of migrants coming into the country. Many members of my extended family were coming over on the boat from Ireland, where there was little opportunity and widespread poverty. I also went to school with many first-generation migrants from Cyprus, India, East Africa and the Caribbean. Later on, I saw other waves of immigration from places like Uganda, after Idi Amin literally kicked out all of the Asian population, and the Philippines. I noticed that many of them bought their own houses rather than relying on council housing, perhaps because this was not so readily available to them as it was to the indigenous population.   Like some of my own family, they rented out part of their house or took in a lodger to help make ends meet. Sometimes, the rent they would and would often cover their mortgage and enable them to save money for another house. It was inconvenient in some ways and not as comfortable as having your own space to yourself, but they did what it took to get on. They also had a higher tendency to start their own businesses, based on my anecdotal observations. Perhaps because they could not find a job which utilise their education and skills from their own country. I also noticed that they worked harder than the average person and often had two or three jobs. Most British people still believed in and depended on the so-called “cradle-to-grave” welfare state brought in after the war. They were told by the government that they will be looked after from the time they were born until they were buried.   Everything was meant to be free from healthcare, education up to university level to elderly care. People pay taxes and national insurance contributions which was supposed to provide for their pension in old age. They also had the safety net of the benefit system which meant that they were paid if they were unemployed or could not work. During my early years in financial services, people would often say things like, “the government will look after me if I don’t have enough pension savings”, or “the state will look after my wife and children if I die with no insurance”. In many ways, they were correct. The state does provide benefits for people who retire without any pension, which seems on fair to all of those people who have sacrificed and saved for retirement. Mature Times Recently quoted a report by Canada life that almost 2 in five pensioners or 38% of claimants receive less than £150 a week. Can you live on £150 per week? You can probably survive on it but you can’t live comfortably on the state pension or benefits, which is why are you here of pensioners freezing to death in the winter or having to make the choice between food or heat. Most people blame the government but the truth is the vast majority of us have the opportunity to work and save during our lifetime.   The welfare system is broken and unsustainable. This is why successive governments have had to change the rules and move the goalposts.     Does all this make you worried? If so, good. We all need to wake up! What can you do? Step one, wake up. Step two, start educating yourself on money and investing. The same opportunities to invest in property are available to you today and in fact it is much easier to get into property than it was years ago.  If you like further details a property courses, such as a one-day introduction to property investing, see https://ambassadorshub.co.uk/ambassador/index.php?aid=AMB0427 or drop me a line to [email protected]