Monday 11 April 2011

Catch 22

It being the end of the financial year, my bank invited me in last week in order to discuss my savings and investments. So I struggled in and explained that, despite the savings I racked up during a couple of decades of work, not to mention my redundancy payment, I am currently receiving ESA, which doesn’t cover all of my outgoings, and as it is Contributions Related ESA, at the start of the next financial year it will drop to nothing, so I really need to optimise my savings and investments.

What I wasn’t expecting to be told in reply was 'Sorry, the FSA won't let us give you financial advice if you have outgoings exceeding earnings.’ So, the government is going to force, by its own estimates, 300,000 contributions-based ESA claimants to live on their savings as of next April, but won't, for that very same reason, allow the banks to give them financial advice on how to maximize the income from those same savings.

I seem to have wandered into Joseph Heller’s ‘Catch 22’….

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