View more on these topics

Politicians must stop running scared of wealthy pensioners


“The only reason to vote is if the vote represents power or change. I don’t think it does.”

These are the words of comedian Russell Brand who refuses to engage with democratic politics.

He’s right that the only reason to vote is if it represents power or change. He’s wrong to say that this is not the case in the UK today.

Politicians spend their lives obsessing about polling numbers and focus group tests because they are terrified of the electorate.

The best example of this power is pensioners who vote in large numbers and hold parties to ransom, while young people vote in small numbers so they can be mostly ignored.

The power of the “grey vote” sees wealthy pensioners showered with huge amounts of public spending and goodies at the expense of younger generations.

Almost one million under 25 year olds are out of work and education and those in work are watching their income fall every year as prices outstrip wages.

Young people are facing higher pension contributions for lower retirement provision.

The average age of an unassisted first-time buyer is now 38 and higher in London and the South-East.

University tuition fees have rocketed and the Conservatives want to stop housing benefit to all under-25s regardless of need.

For rich pensioners it is a completely different story. In an age of austerity all retirees still receive free bus passes, TV licences and winter fuel payments.

In 2012/13 the Government paid £8.8m in winter fuel payments to pensioners living in Spain. Winter fuel payments to pensioners in hot foreign countries will end next year but it has been a long time coming.

By comparison it tried to stop a young lady’s unemployment benefits for not taking a job at Poundland under its workfare programme because she wanted to continue with her internship.

While benefit increases have been capped at 1 per cent from this year to 2016, the state pension enjoys the generous triple lock.

The triple lock means pensions will rise along with earnings, inflation or 2.5 per cent, whichever is highest.

It has been branded “unaffordable” but politicians have been scared off opposing it since it was introduced in 2010.

The Pensions Policy Institute estimates pensioners will benefit from state increases 0.25 per cent higher than earnings rises.

Even Government schemes designed to benefit the aspirational young, such as Help to Buy, end up benefiting older people far more.

Anyone who bought a house in the last 20 years has made a killing as house prices rocketed and it is today’s first-time buyers who are paying for it.

Speaking at a Financial Services forum event last week, former Prime Minister Tony Blair’s political secretary John McTernan said: “Young people buying in London today are involved in the largest single transfer of cash from the younger generation to the older one that has ever happened in the history of mankind.

“The circumstances of the date they were born, which people have no control over, is defining whether they are winners or losers. Old people win and they are cashing in by selling their homes.”

The reason young people can be bashed with rocketing house prices, university fee hikes and benefit curbs while rich pensioners spend winter fuel allowance on sangria is voting power.

Admirably, Labour wants to introduce voting for 16 year olds which could boost representation of young people and make their voices heard.

The only way to start a “youthquake” and stop politicians pandering to wealthy pensioners is to vote in large numbers. Ignore Russell Brand.

Samuel Dale is politics reporter at Money Marketing – follow him on Twitter here



Transact: Firms may start charging clients for switching to clean

Transact believes platforms or fund managers could start looking at charging clients to recoup the costs of converting them to clean share classes. Speaking at the Personal Finance Society annual conference in Birmingham last week, Transact head of technical services Brian Radbone said while he was not against the idea of clean share classes, there […]


Treasury says it is ‘serious’ about supporting fund management

The Treasury say it is serious about supporting the UK asset management industry, saying its move earlier this year to provide tax breaks for fund managers “was not easy”. Speaking at the Tax Incentivised Savings Association annual conference in London yesterday, Treasury financial services strategy deputy director Will Brandon said the abolition of Schedule 19 […]


News and expert analysis straight to your inbox

Sign up


There are 5 comments at the moment, we would love to hear your opinion too.

  1. Much easier would be cross party agreement on these issue – don’t hold your breath though.

  2. You forget – Money Talks.

    Annoy wealthy pensioners and you risk seeing them just up and off. There is nothing to stop them. Properties in Spain are now bargain basement. France is much cheaper than the UK.

    Anyway as you said they vote and the young don’t. What better way of loosing an election?

    The way this new fashion has it anyone would think that current pensioners with wealth stole it. They generally worked harder than the young do now. How many youngsters regularly work 60 hours? 42 hours was the normal minimum. They had no health and safety or any of the other naby-pambying that goes on today. They also had to save before they could spend. There weren’t credit cards and there was credit control. Deposits of at least 25% had to be paid before anything at all, could be bought. Mortgages had far more stringent conditions than today.

    The pensioners of today were generally far better educated ( current research has recently borne this out).You actually had to be clever to get into university and there weren’t the daft courses there are today.

    So go put in your pipe and smoke it.. Grey power rules- get used to it and live with it. Just hope they leave you something when they peg it. Perhaps you should be lobbying against IHT instead!

  3. Neil F Liversidge 14th November 2013 at 9:10 am

    Personally I’d reduce the voting age to 13. Some may say that 13 – 16 year olds are not smart enough to vote. The same argument however could be made of many 18 – 80 year olds. Politicians need to be forced to address the long term future of the country rather than the shortest of short-term considerations and the fact is, the kids are it. Who knows? It might even pull education policy out of its 30-year tailspin.

  4. I recently read a quote which i think sums up politics quite well.

    “We all know what we need to do. We just don’t know how to get elected afterwards”

    Apologies for not being able to remember which politician can be credited with that truth.

  5. Surely not a case of politicians running scared – but simple economic fairness. Who contributes (or has contributed) more to the system – a 16 year old or a pensioner? AND will comentators like Mr Dale please stop promoting and endorsing mis-guided views of lost souls such as Brand (R)! I suspect extending periods of drug taking can have adverse effect on logical thought.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm