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Pensions Will Be Sacrificed To Prevent Hpc

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Here

http://www.bbc.co.uk/news/uk-12590039

Sinister line is:

The Director General of the Saga group, Dr Ros Altmann, thinks the proposed change is an "absolutely excellent idea".

"The problem we have at the moment is people feel, certainly if you are in your 20s and 30s, that by putting money into a pension that money is confiscated from them, because they can't get it back until they are in their 50s."

She said: "There are lots of people at the moment who have got tens of thousands of pounds in a pension fund who are having their houses repossessed, because they can't get the money."

The Department for Work and Pensions estimates that around 7 million working age people are currently not saving enough for their retirement.

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Read the article , came straight here to post the exact same thread.

This would really get the bubble going again....

Nah, most people only have a few quid in their pension funds. If I remember correctly, the average is less than £50K.

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Nah, most people only have a few quid in their pension funds. If I remember correctly, the average is less than £50K.

Yes. leave pensions as they stand......just give people better tax incentives to save in other medium term ways say 10 years......we used to get good tax relief on endowment style savings, more of the savings less of the life insurance.... ;)

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I reckon what will happen here is that if you get made unemployed your pension pot will be classed as assets and you wont be able to claim anything until its exhausted

Nice

Dark view of things but you have hit on a very good point.

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I am one of the lucky ones and have a very good pension pot from an ex employer .

I own a very small flat outright and earn very little money now. Im 48 in a few months , so have another 7 years to wait for the pension. If i could get my hands on the money between now and then , would I take it sell where I live now and with any lump sum buy a bigger place ? Probably .

The only thing is the more money in the pot the more it grows each year and waiting the extra years would make it much bigger and better . I would need to weigh up the pros and cons a smaller pension but getting it sooner plus being able to use the lump sum against waiting for more at a later date.

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Dark view of things but you have hit on a very good point.

Does anyone know the legal situation with pensions at present? If you are repossessed, and then declared bankrupt - do you lose the pension, or is it protected?

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Does anyone know the legal situation with pensions at present? If you are repossessed, and then declared bankrupt - do you lose the pension, or is it protected?

.....protected as far as I know. ;)

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I would love it personally. I have been looking for a while at ways of getting my money out of my UK pension plan.

Not so much because I am against saving for a pension but because the UK pension system is a scam and I would much prefer building my own pension myself (I know about SIPPs but your money is still tied.

One way or another it would be equivalent to a drop in house prices by the amount of NIC and tax that was not paid on the pension money in the first place.

Remains to be seen if this would cause house prices to go up again or simply allow people to put together the deposit they need and get the market moving (but not necessarily up). I personally think of the latter.

Another reason why I would love this is because as a company director I would basically increase my pension contributions (tax free, even corporation tax free as it comes out of my turnover) rather than take out dividends (to save money for a house) on which I pay tax.

I agree though that it would be a disaster for most as it goes exactly in the wrong direction if the aim is to get people to save more for a pension, yet again I don't thinks that is the aim anyway...

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.....protected as far as I know. ;)

So if this legislation broke that protection, then the banks would be able to get their hands on everyone's future pensions in the event of a major HPC. Nice result for the banks if they can pull it off... another good reason not to jump back in to property having gone STR!

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I reckon what will happen here is that if you get made unemployed your pension pot will be classed as assets and you wont be able to claim anything until its exhausted

Nice

I think you hit the nail on the head there.

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The real threat here is to those who manage these funds and run off with 40% of the cash, won't someone think of the bankers. Clearly the unintended consequences of this action haven't been thought through.

Edited by interestrateripoff

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I reckon what will happen here is that if you get made unemployed your pension pot will be classed as assets and you wont be able to claim anything until its exhausted

Nice

Yep, and then you lose your house and you are left without anything, and the bankers are sitting pretty as usual.

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The real threat here is to those who manage these funds and run off with 40% of the cash, won't someone think of the bankers. Clearly the unintended consequences of this action haven't been thought through.

Look at it this way....if you had not have saved it, you would of spent or even wasted it anyway.....look back 30 years later and I guarantee you would not remember what it was spent/ went on.......whatever you do with your money there will always someone there to take a percentage of your hard work for themselves...you can't change that. ;)

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I think, as from tomoz, government paid pensions should be adjusted to the amount of money the employee paid in, ie, remove the final salary and index linking part...today.

then pay them what they would get with an annuity.

today.

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I think, as from tomoz, government paid pensions should be adjusted to the amount of money the employee paid in, ie, remove the final salary and index linking part...today.

then pay them what they would get with an annuity.

today.

No Scrap annuitys there are plenty of other ways to have your money invested and then drip fed to you instead of annuitys public or private pensions annuitys are the biggest con of the lot.

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No Scrap annuitys there are plenty of other ways to have your money invested and then drip fed to you instead of annuitys public or private pensions annuitys are the biggest con of the lot.

I agree, I suggested pay them what they would get with an annuity....Government pensions seem to be unfunded and get paid out of taxation.

The problem with Annuities is that they pay shite, and when you die, the bank keeps the capital.

yet they still pay shite.

Edited by Bloo Loo

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I reckon what will happen here is that if you get made unemployed your pension pot will be classed as assets and you wont be able to claim anything until its exhausted

Nice

A good reason to put your money into other things. Outside the system.

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No Scrap annuitys there are plenty of other ways to have your money invested and then drip fed to you instead of annuitys public or private pensions annuitys are the biggest con of the lot.

they already have

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I agree, I said pay them what they would get with an annuity....

The problem with Annuities is that they pay shite, and when you die, the bank keeps the capital.

yet they still pay shite.

I'm reasonably happy with mine. Considering I got higher rate tax relief on the money I paid in, 7.2% is not too bad. Yes, they keep the capital, but as I bought mine in my mid 50s I should get my money's worth, or perhaps I'll meet the proverbial bus tomorrow, who knows :rolleyes:.

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Yep, and then you lose your house and you are left without anything, and the bankers are sitting pretty as usual.

I disagee.

Actually the bankers and pension/insurance funds might hate the policy.

Right now I have about £280k of pension savings and my wife will have something similar.

We also have a large mortgage.

If we paid off the mortgage using the pension (assuming no loss of tax relief), then the mortgagor would stop receiving interest and my pension fund providers would no longer be able to cream off 0.5%-1% per year.

Suddenly I'd be better off by about £30k per year.

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on a broader point - surely the most important concern is whether pension savings will remain 'outside' benefits and bankrupcy/solvency considerations

i.e. if you non-beligerantly go bankrupt then AFAIK your pension remains untouched, and your pension balance does not effect your social security

if that changes then we have a problem...

(pretty much another case of the drawbridge being raised behind the boomers in that case - THEY had protected pension savings, but later generations apparently have to lose theirs in order to pay off the credit crunch)

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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