Tuesday, Aug 10, 2010
Wonder is the same can be said for high houseprices
Yahoo: Linking pensions to CPI 'breaches human rights'
Plans to link private pension increases to the Consumer Prices Index (CPI (NYSE: CPY - news) ) are a nightmare which could breach human rights, a group of experts have said.
Posted by mark @ 10:05 AM (737 views) Add Comment
8 Comments
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1. Collywolly said...
Is this necessarily a bad thing?
The RPI includes mortgages and has been way higher than the CPI because of that, no? Assuming that House prices are maxed out relative to normal stuff (in the CPI basket), then as everything else increases in price, then the CPI should end up being higher than the RPI in the future.
I am welcome to suggestions why this theory may be wrong.
2. mark said...
redbull must have gone to my fingers, seems to be a typo in heading, should be "wonder if same can be said for high houseprices"
it would certainly make an interesting case against the BOE if it could be proved they have kept prices up which is detrimental to both the economy and people
3. Stevie Dee said...
Wishful thinking, remember bank charges and the OFT.
4. str 2007 said...
When you think about it, as a pensioner you should be in a house owned outright.
Therefore not having house prices in the index your income is related to shouldn't matter.
In theory, if house prices were to fall steadily, then although we are used to RPI (including housing costs) being higher than CPI, it could be we see the reverse of this as houses depreciate long term.
Maybe Vince has played himself a blinder with this one as he'll be better off when he retires. Which I assume would be in the next 5 years or so.
5. Crunchy said...
'breaches human rights'
That's the name of the game from where I'm standing. That's the New World Order Winston.
How's the independent Iran doing these days?
6. iguana said...
Not certain what human rights are breached, surely this is a simple matter of terms of a contract?
attained."3 flustath
7. mark wadsworth said...
Iguana nails it.
This is all just typical Daily Mailexpressgraph bleating. What they are referring to is a single default clause in some pension schemes act or other which says if the contract is silent as to which rate of inflation is to be used, then the statutory default rate applies (I looked it up once and it really is quite obscure).
8. Crunchy said...
4. mark wadsworth said...(I looked it up once and it really is quite obscure).
Yes, well.