Jump to content
House Price Crash Forum
ken_ichikawa

New Way To Encourage Saving

Recommended Posts

http://online.wsj.com/article/SB10001424052748703410604576216663758990104.html

Precis:

Americans save more when they are artificially aged using computer software as it scares them into thinking about their future more.

Translated:

Big banking group engineers software to artifically age via computer software people to sell pensions products and savings programs which will almost always certainly pay out substantially less than the money paid in. And will be eroded to nothing with inflation.

Share this post


Link to post
Share on other sites

Interested to see what other people here think about pensions and saving for retirement actually.

I'm far too young to offer anything substantial.

Everybody nearing retirement age at my work place tells me they would be better off stuffing cash into a mattress. They predict theyll get it back if they live to about 160+

My dad has a crappy <£100 a month pension and several under £4 a month pensions the money he put in had enormous purchasing power at the time. . He also wishes he never saved and spent it instead.

Share this post


Link to post
Share on other sites

Never understood the obsession with pensions (although I do understand why the financial sector pushes it). Spend it whilst you got it and have enough to enjoy a quiet, frugal end to your days - sort of proves the "life is what you do whilst you make plans" line. You get to retirement (and if you're still alive) you realise you would have enjoyed the money more when you were younger - but hey it keeps the stock market bobbing along with all those generous commissions..

Share this post


Link to post
Share on other sites

Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, champagne in one hand - strawberries in the other,screaming "WOOHOO - What a Ride!".

No pockets in a shroud......... Party on ! B)

Share this post


Link to post
Share on other sites

My grandmother received the joint pension that my grandfather had paid into for them both (he died before he was able to enjoy it), when she went into a home (after being cared for by our family for ten years), she found she would have been better off without any savings at all. Or at least the outcome would have been the same. The woman in the room next door didn't have a bean but got the same care provided by the state, the state that took all of the savings my grandmother had within three years. Would have been better of spending it all on 10 round the world cruises whilst she had the chance.

Pensions are for mugs IMHO

Reminds me of that story about the ant and the grasshopper except viewed through the distorting mirrors of a travelling fair.

Share this post


Link to post
Share on other sites

Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, champagne in one hand - strawberries in the other,screaming "WOOHOO - What a Ride!".

No pockets in a shroud......... Party on ! B)

Don't worry paying off Glazier's debt repayments will ensure you won't have any money for years to come.....

Share this post


Link to post
Share on other sites

Couldn't agree more -- enjoy life while you have the health to do it. Old age comes while you are not looking and if you have enjoyed life while you are young then you have many happy memories to keep you going.

Lost count of the number of people who say they wish they had done x or y when they were younger.

Share this post


Link to post
Share on other sites

I think the problem with of the “old” pension - the final salary pension scheme, is that it was unfunded. The government basically promised people a big pension that was never there. I can understand why people are disappointed. But when someone tells you “Save £4 a week for 40 year, you will get £20,000 a year pension NO MATTER WHAT”, do you just go “yea, I am no good at Math but that plan makes perfect sense and you sound like a good guy, I will vote for you.”?

I have a funded pension which I pay a % and my employee contributes a %. In short, it makes sense to me.

Reason 1, if I don’t pay my share, I don’t get the employee’s contribution. So even if I loose a large share of all of my pension in the end, I still get my share back.

Reason 2, the pension contribution is tax exempt (The so called “tax exiles” just do the same, but in a much more elaborated way). All my company’s big bosses actually pay up to 15% into their pension, because (unlike poor little me) they don’t need that much cash right now.

Reason 3 – I can select what funds I put my money to. This includes anything from FTSE 100 linked to UAE stock market. If you are not too greedy, it is relatively easy to beat inflation and a bit more.

The main risk of this otherwise sensible plan is that the Labour government raided pension and then penalised people for saving and give you less state pension BECAUSE you saved and then give free money to people who do not save.

So if you believe when you retire we will have a government that just sends people to incinerators and take their money away, then don’t save. But if you believe that we will have a crap government but at least will leave us alone (to a certain degree) please do save.

Share this post


Link to post
Share on other sites
Guest The Relaxation Suite

My grandmother received the joint pension that my grandfather had paid into for them both (he died before he was able to enjoy it), when she went into a home (after being cared for by our family for ten years), she found she would have been better off without any savings at all. Or at least the outcome would have been the same. The woman in the room next door didn't have a bean but got the same care provided by the state, the state that took all of the savings my grandmother had within three years. Would have been better of spending it all on 10 round the world cruises whilst she had the chance.

Pensions are for mugs IMHO

Reminds me of that story about the ant and the grasshopper except viewed through the distorting mirrors of a travelling fair.

Absolutely. She should have gone to Vegas and put it all on the roulette wheel. She might have got lucky and become a millionaire or she might have lost the lot and got exactly the same care she would have got anyway.

Share this post


Link to post
Share on other sites

Best investment for pension was Buy to Let. Someone with a big income who say saved 20% a year, could have quite a portfolio now.

For your average person who makes a pittance, don't bother with pensions imo. Go out enjoy the extra money.

Share this post


Link to post
Share on other sites

My grandmother received the joint pension that my grandfather had paid into for them both (he died before he was able to enjoy it), when she went into a home (after being cared for by our family for ten years), she found she would have been better off without any savings at all. Or at least the outcome would have been the same. The woman in the room next door didn't have a bean but got the same care provided by the state, the state that took all of the savings my grandmother had within three years. Would have been better of spending it all on 10 round the world cruises whilst she had the chance.

Pensions are for mugs IMHO

Reminds me of that story about the ant and the grasshopper except viewed through the distorting mirrors of a travelling fair.

Unfortunately we are moving into an era where the above will cease to become a reality, if you ain't got money to pay for your own care you will be on the street, or reliant on charity. All of this will just ne regarded as a blip in history.

Share this post


Link to post
Share on other sites

My grandmother received the joint pension that my grandfather had paid into for them both (he died before he was able to enjoy it), when she went into a home (after being cared for by our family for ten years), she found she would have been better off without any savings at all. Or at least the outcome would have been the same. The woman in the room next door didn't have a bean but got the same care provided by the state, the state that took all of the savings my grandmother had within three years. Would have been better of spending it all on 10 round the world cruises whilst she had the chance.

Pensions are for mugs IMHO

Will this also apply twenty or thirty years from now?

Much of the welfare state is being dismantled and the tax system is being re-jigged to favour work and saving. Wind the clock on a generation and your grandmother might be living out her old age in relative comfort and dignity, while "the woman in the room next door" might not be there any more.

Many will reach old age in the future and find a different and less caring world awaits, a world where unless you can pay an immigrant to wipe your @rse then your @rse will just have to remain unwiped.

Share this post


Link to post
Share on other sites

Interested to see what other people here think about pensions and saving for retirement actually.

I'm far too young to offer anything substantial.

Pensions make a lot of sense if

- you are a higher rate taxpayer

- your employer contributes to the pot

If not, then it is worth considering other options as well.

Either way, plan on living well into your 80s, without getting a lot from the government

Share this post


Link to post
Share on other sites

You get to retirement (and if you're still alive) you realise you would have enjoyed the money more when you were younger - but hey it keeps the stock market bobbing along with all those generous commissions..

Around 90-95% of university leavers will survive to retirement age, whereas most people seem to almost regard it as 50:50.

Share this post


Link to post
Share on other sites

Unfortunately we are moving into an era where the above will cease to become a reality, if you ain't got money to pay for your own care you will be on the street, or reliant on charity. All of this will just ne regarded as a blip in history.

Have dozens of kids if you're not planning on saving.

That way they can take it in turns to put up with you when you're old.

One of my favourite poems:

WARNING!

When I am an old woman I shall wear purple

With a red hat which doesn't go, and doesn't suit me.

And I shall spend my pension on brandy and summer gloves

And satin sandals, and say we've no money for butter.

I shall sit down on the pavement when I'm tired

And gobble up samples in shops and press alarm bells

And run my stick along the public railings

And make up for the sobriety of my youth.

I shall go out in my slippers in the rain

And pick the flowers in other peoples' gardens

And learn to spit.

You can wear terrible shirts and grow more fat

And eat three pounds of sausages at a go

Or only bread and pickles for a week

And hoard pens and pencils and beermats and things in boxes.

But now we must have clothes that keep us dry

And pay our rent and not swear in the street

And set a good example for the children.

We must have friends to dinner and read the papers.

But maybe I ought to practice a little now?

So people who know me are not too shocked and surprised

When suddenly I am old, and start to wear purple.

Share this post


Link to post
Share on other sites

And what on retiring at age 55 vs retiring later?

Most graphs I've drawn myself show there is little difference besides the amount you actually earn through the job. Assuming you can keep investing it at a similar rate as the jokers running your pension.

Share this post


Link to post
Share on other sites

I wouldn't have someone wiping my ass no matter how much money I had. If I got to that point I'd kill myself. If you are crapping yourself and unable to bathe yourself.. its probaly a good sign that you've overstayed your welcome.

There is this entitlement mentality that a person should work for a few years.. then spend 25 years going on vacations and living it up on a very generous pension.. then the last 5-10 years with a bunch of people caring for them, when they are a bag of bones.

The price seems to be they have to give up their youth.. and work through it.

Share this post


Link to post
Share on other sites

Around 90-95% of university leavers will survive to retirement age, whereas most people seem to almost regard it as 50:50.

I do not believe I will live beyond 40 because of my taste for hazardous activities. A few weeks ago I nearly died twice while skydiving..... I thought nothing of it and went up on the next lift.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.