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Reck B

Contribute To Your Staffs Pension

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Currently, the law says that businesses have to make available a pension schemes if they employ 5 or more staff. I think this is just about fair enough - we had a consultation with our staff and none of them wanted to take the stakeholder scheme we offered. Great - that's one less administrative headache and cost and they/us are free to make this choice.

However, from 2012 companies will have to contribute into a pension scheme for their staff, starting at 1% and rising to 5% from 2017 and all companies will have to do this, even if they employ 1 member of staff.

This is nuts ! Can we not take our own responsibility for our retirement? so we pay NI contributions for the state pension and are now forced to pay for private pensions too?

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This NEST scheme is a bit of a con from what I can see.

I think there are going to be heafty fees, like 2% per annum for the first decade to pay for set up costs. So I read a while ago.

Also I think it is a way of the government trying to draw in investors into confetti government gilts, no doubt they will be heavily pushing this junk in any funds that the scheme is invested in.

All with the aim of keeping the ponzi bond market going for a few years more :D

Edited by ringledman

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The state pension will be roughly £140 a week = £7200 a year roughly.

With no housing costs that is plenty to live on. Probably about what I spend now excluding mortgage costs.

I'm very happy to save for the years between when I want to retire and when the money I've contributed into my state pension comes back to me but I don't want to do this via a company scheme.

I'll only start a pension if I go into the higher tax bracket.

Maybe a BTL would be the best option in a few years :)

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Individuals will have the option to opt out of NEST, but only once their employer has opted them in. It's true though that employers will have to put people in a pension and pay into it for them (unless that person chooses to opt out).

Even if as an employee you do choose to opt out your employer will have to re-enrol you 3 years later, and 3 years after that, and three years after that... And if you join a new employer they'll have to enrol you too whether you like it or not.

It's going to be interesting!

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The state pension will be roughly £140 a week = £7200 a year roughly.

With no housing costs that is plenty to live on. Probably about what I spend now excluding mortgage costs.

I'm very happy to save for the years between when I want to retire and when the money I've contributed into my state pension comes back to me but I don't want to do this via a company scheme.

I'll only start a pension if I go into the higher tax bracket.

Maybe a BTL would be the best option in a few years :)

What about the state second pension and the consequences of opting out.

Thanks.

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What about the state second pension and the consequences of opting out.

Thanks.

It won't be possible to opt out (contract out) of the state second pension from 2012 onwards.

Recent plans to increase the basic state pension seem to include a gradual phasing out of the state second pension although details aren't yet known. The state second pension was going to move to a flat-rate payment rather than a salary/contribution related payment anyway.

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It won't be possible to opt out (contract out) of the state second pension from 2012 onwards.

Recent plans to increase the basic state pension seem to include a gradual phasing out of the state second pension although details aren't yet known. The state second pension was going to move to a flat-rate payment rather than a salary/contribution related payment anyway.

Is that for people already contracted out before 2012?

Looking at the White paper it seems that my OH is paying

an additional £10.60 in NI contributions for an additional

benefit of £1.40 a week from her seventies. Sure doesn't

seem like value for money to me.

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Is that for people already contracted out before 2012?

Yes, from 2012 the government will no longer pay contracted out rebates into a plan of your choice. NI will stay the same.

Looking at the White paper it seems that my OH is paying

an additional £10.60 in NI contributions for an additional

benefit of £1.40 a week from her seventies. Sure doesn't

seem like value for money to me.

The state second pension has always been of questionable value even if you take the government's "promise" at face value. It's extremely poor value if the government moves the goalposts and makes your additonal savings irrelevent, which some people think is inevitable...

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This NEST scheme is a bit of a con from what I can see.

I think there are going to be heafty fees, like 2% per annum for the first decade to pay for set up costs. So I read a while ago.

Also I think it is a way of the government trying to draw in investors into confetti government gilts, no doubt they will be heavily pushing this junk in any funds that the scheme is invested in.

All with the aim of keeping the ponzi bond market going for a few years more :D

Sounds like some spin in there. But yes, noone seems to have much that's good to say about the government scheme. So it's interesting that noone in politics is trying to stop it: a scheme started by NuLab and taken over smoothly by the current lot.

I expect what'll happen in practice is that fund managers will compete to offer a range of schemes to even the smallest employers, and enable them to steer clear of the government scheme on favourable terms.

Oh, and it's not about gilts until and unless you buy an annuity.

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The state pension will be roughly £140 a week = £7200 a year roughly.

With no housing costs that is plenty to live on. Probably about what I spend now excluding mortgage costs.

I'm very happy to save for the years between when I want to retire and when the money I've contributed into my state pension comes back to me but I don't want to do this via a company scheme.

I'll only start a pension if I go into the higher tax bracket.

Maybe a BTL would be the best option in a few years :)

Check out how your American cousins are brainwashed into thinking that you need an enormous retirement fund.

http://finance.yahoo.com/focus-retirement/article/112572/how-to-retire-on-60k-year-moneywatch?mod=fidelity-managingwealth&cat=fidelity_2010_managing_wealth

These articles appear every few weeks or so on Yahoo or CNN. Nevermind that it is only possible for 5 to 10% of the people out there, or even that the article is sponsored by Fidelity. The message is that if you can't consume at that rate into your dotage you are a failure.

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Sounds like some spin in there. But yes, noone seems to have much that's good to say about the government scheme. So it's interesting that noone in politics is trying to stop it: a scheme started by NuLab and taken over smoothly by the current lot.

I expect what'll happen in practice is that fund managers will compete to offer a range of schemes to even the smallest employers, and enable them to steer clear of the government scheme on favourable terms.

Oh, and it's not about gilts until and unless you buy an annuity.

Aren't large pooled company and public sector pensions heavily invested in gilts?

Call me a cynic but this to my eyes just another way of drawing in a new set of purchasers to worthless bonds in order to keep the yields low and hence the government's borrowing.

Best avoid any pooled type of pension as they are all ponzi scheme with fewer and fewer workers to keep the retired dependents going.

Isn't there a dutch company who say can bring in a SIPP for £5 a year annual management charge? Some competition in the pension market is badly needed but I cant see this NEST scheme doing much with its ludicrous charges.

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does anyone else think that this whole nest thing is being set up so they can dissolve the state pension scheme.

Ultimately we can't afford it, and soon they will be able to say that everyone has a pension through their employer (i know not everyone has a job).

I smell a rat.

edit - now if they were going to phase out NI at the same time as this comes in, then I would be in favour.

Edited by LJAR

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does anyone else think that this whole nest thing is being set up so they can dissolve the state pension scheme.

Ultimately we can't afford it, and soon they will be able to say that everyone has a pension through their employer (i know not everyone has a job).

I smell a rat.

edit - now if they were going to phase out NI at the same time as this comes in, then I would be in favour.

I think this is where we are heading but without the phasing out of NI contributions.

There'll still be a state pension although it'll be means tested. It makes me so angry.

the winners will be the ones who pay little or no tax througout their working age lives.

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  • 311 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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