No, I am not talking about Indonesia; I am talking about
the United Kingdom. I have just returned from a short holiday
there and was able to find more reasons for staying overseas!
Here are some of the stories that were hitting the headlines
while I was there:
Mother allowed underage daughters to have babies
Not so many years ago in the UK an unmarried mother would
have faced great hardships if not supported by her family.
Today, under the ‘progressive’ welfare state large
amounts of money are handed out by way of various benefits
to families who cannot support themselves. Consequently a
particular family of a mother and her three young unmarried
daughters, all with babies, were reported to be enjoying an
income from the state of several hundred pounds a week, more
than many people could earn.
The ‘refugee’ child smuggling racket
The UK’s generous handouts have not gone unnoticed by
foreign scam artists. It was reported that hundreds of children
were being smuggled into the UK by African syndicates in order
to claim benefits from the state. Much of the lucrative income
is allegedly returned to the syndicates in Africa. It seems
that the scam letter writers have found a new source of income.
Massive fraud is suspected but the authorities appear powerless
to combat it.
Bibles to be banned in some hospitals
Some hospitals in the UK are proposing to ban bibles for risk
of offending ethnic minorities. Interestingly, the move has
been criticized by the same ethnic minorities the proposal
was intended to please.
Pensionable age to depend on social class?
Every western country is struggling with the problem of funding
retirement pensions for ageing populations. One proposal that
made the headlines while I was in the UK was that people should
retire at an age depending on their social class. Those who
left school early and had a shorter expected life span should
be able to draw their pensions at the current retirement age
of 65 but those who followed higher education and had a longer
life expectancy should not be able to draw their pensions
until 70. There is a certain element of logic in this in that
those who left school early have been contributing longer
to the state scheme whilst those who were ‘privileged’
to go to university started working and contributing much
later. However laudable, such a proposal would be extremely
difficult to implement so it will no doubt fall by the wayside.
Britain is not alone with its follies
Despite the above the UK in many respects is more productive
than many of its European counterparts. In parts of Europe
workers cling even more tightly to benefits they consider
their birthright. This in turn increases the tax burden and
discourages job creation. Politically, Europe is currently
in turmoil following rejection by the French and Dutch of
the proposed new constitution. The rejection was seen as a
wake-up call for politicians who had been promoting changes
without listening to the people. But it also meant that long-needed
reforms would now be harder to push through. Workers will
fight to retain their 35-hour weeks oblivious to the fact
that those in other countries such as India are prepared to
work 35-hour days, and for much less!
What has all this to do with Bali?
For long term expats in Bali the news items referred to may
just be of passing interest. But there are implications that
affect us all. Budgets in western countries are under increasing
pressure due to ageing populations and excessive welfare handouts.
It means that should we return to our home countries in later
life there will be few, if any, state benefits. Survival may
depend on friends, family or charities if we have not made
adequate provision for ourselves. Long term private care now
costs at least US$3,000 a month. To keep this funded without
dipping into capital would require a lump sum of around US$750,000.
So we may have to keep open the option of seeing out our golden
days in Bali. At least it’s warmer than the UK!
Colin Bloodworth is a senior adviser with Financial Partners
International. The views expressed are his own. If you have
any questions you may contact the writer at 021 520 8099 or
colin.bloodworth@financial-partners.biz
