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uztopride

Inflation To Cut Pensioner Spending Power By 60Pc

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Pensioners retiring this year on a fixed income could see almost £10,000 wiped off the value of their pension pot in real terms over the next two decades, the report claimed. To beat inflation and maintain a decent standard of living, pensioners would need a retirement income worth more than double what they had set aside for the next 20 years, the analysis by Prudential said.

A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 effectively a £10,000 pay cut, the report showed. Retired people were "particularly vulnerable" to the rising cost of living because they tended to spend more of their income on goods subject to the highest rates of inflation, such as food and fuel.

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http://www.telegraph.co.uk/finance/personalfinance/pensions/8731674/Inflation-to-cut-pensioner-spending-power-by-60pc.html

Pensioners retiring this year on a fixed income could see almost £10,000 wiped off the value of their pension pot in real terms over the next two decades, the report claimed.

To beat inflation and maintain a decent standard of living, pensioners would need a retirement income worth more than double what they had set aside for the next 20 years, the analysis by Prudential said.

A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 – effectively a £10,000 pay cut, the report showed.

Luckily I bet BoE employees won't be seeing a similar reduction in living standards.

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"A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 – effectively a £10,000 pay cut, the report showed."

If retiring at 65, they will be 95 by then, I doubt anyone other than Fred Goodwin has a pension big enough to pay for care at that age.

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"A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 – effectively a £10,000 pay cut, the report showed."

If retiring at 65, they will be 95 by then, I doubt anyone other than Fred Goodwin has a pension big enough to pay for care at that age.

..if they owned a house they would have spent any of the equity left in it to top up the the falling value of the pension....

Start with nothing end up with nothing.....a good way of living a balanced life I would have thought. ;)

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If retiring at 65, they will be 95 by then, I doubt anyone other than Fred Goodwin has a pension big enough to pay for care at that age.

The bank of Mum and Dad was canny enough to invest in a future care room with their children.

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Every know pensioners are loaded since they bought their mansions for £100 in 1954?

~~Or is this not the case?

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The bank of Mum and Dad was canny enough to invest in a future care room with their children.

..I wipe your bum, you wipe mine. :blink:

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inflation is necessary to deal with the national public and private debt

I don't recall the older generations protesting in the streets about the buildup of this debt to provide them with government services, and neither do I recall them being concerned about the rise of house prices and how this would affect the young

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"A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 – effectively a £10,000 pay cut, the report showed."

If retiring at 65, they will be 95 by then, I doubt anyone other than Fred Goodwin has a pension big enough to pay for care at that age.

I think it is so engrained in the older generations that THE financial strategy for the man on the street is: property, nimbyism, building society deposits, pension annuity

and that's it

lack of generational financial intelligence is clear in every way - (edit, perhaps except for the savings ethic, but since they're in as much debt as everyone else from the stats i see, hardly the case...)

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"A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 – effectively a £10,000 pay cut, the report showed."

If retiring at 65, they will be 95 by then, I doubt anyone other than Fred Goodwin has a pension big enough to pay for care at that age.

If they retire at 65 in 2011, they'll be 85 in 2031

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If they retire at 65 in 2011, they'll be 85 in 2031

Seasonally adjusted! ;)

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"A worker retiring in 2011 with an average annual income of £16,600 can expect to see the value of their fixed income pot worth a "mere" £6,700 by 2031 – effectively a £10,000 pay cut, the report showed."

If retiring at 65, they will be 95 by then, I doubt anyone other than Fred Goodwin has a pension big enough to pay for care at that age.

Er, 85.

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I don't recall the older generations protesting in the streets about the buildup of this debt to provide them with government services, and neither do I recall them being concerned about the rise of house prices and how this would affect the young

Concerned about rising house prices? They were/are the opposite of concerned:

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To put this in perspective £1m in a SIPP today will get you at most £40k a year in an index linked pension at 60 (including expected future growth) - hardly princely after tax

Its the dark side of 0.5% interest rates and low gilt yields

Almost all new retirees without final salary pensions will have very limited income

Final salary pensions in the private sector pretty much died in the 80s and 90s

I kinda hope this will mean they will be forced to sell their big houses, but we'll see...

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To put this in perspective £1m in a SIPP today will get you at most £40k a year in an index linked pension at 60 (including expected future growth) - hardly princely after tax

Its the dark side of 0.5% interest rates and low gilt yields

Almost all new retirees without final salary pensions will have very limited income

Final salary pensions in the private sector pretty much died in the 80s and 90s

I kinda hope this will mean they will be forced to sell their big houses, but we'll see...

But aren't there some people who are on final salary pensions (paid for by those without any such protection)... :unsure:

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Move along, nothing to see. This is just demographic inevitability coming home to roost. Been expecting it since the 1980s.

Sure, the Big Boom and Bust have made it hugely worse for most of us, and above all for those born just slightly the wrong side of the big catastrophic cut-off date (April 6th 1960).

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http://www.telegraph.co.uk/finance/personalfinance/pensions/8731674/Inflation-to-cut-pensioner-spending-power-by-60pc.html

Luckily I bet BoE employees won't be seeing a similar reduction in living standards.

Or BOE pensioners my old Mum worked there as what was called a supplementary from the seventies to the mid nineties. They were middle aged mums who had banking experience drafted in to efectively run the place because the graduates didn't have a clue. They did the lot, oversaw the destruction of banknotes (the film with Caroline Quentin where they actually nicked the notes was wrong they weren't cleaners they were part of this crowd), counted and delivered bank bonds through the city and generally were the oil in the wheels.

Anyway I digress she just had a 5% rise in her pension and got the same last year, but hey good luck to her a girl from Kentish Town ending up working in the Bank of England with no degree and left school at 16 we were a country of opportunity once.....

Oh they all get and keep forever a Bank of England account sort code 10-00-00 which as I said to her could be risky these days.....quite fun handing over a Bank of England cheque in banks they think you are a nut nut and then apologise!

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I don't recall the older generations protesting in the streets about the buildup of this debt to provide them with government services, and neither do I recall them being concerned about the rise of house prices and how this would affect the young

This is a news item; no-one is "protesting" about anything. In any case this isn't an item about older people it's an item about people of your age (which I assume is fairly young). It is you who should be concerned and protesting.

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But aren't there some people who are on final salary pensions (paid for by those without any such protection)... :unsure:

Yes, final salary schemes are still out there. The government should dismantle ALL of these schemes, they are dangerous to the economy.

If these schemes have a deficit, the company sponsoring these schemes has to make good the difference. This can wipe out the equity in that company, effectively making it impossible for it to raise capital, because the pension deficits can become so vast.

If there sponsoring company ceases to exist, perhaps bled to death by the pension scheme, then when the pension scheme is wound up, those retired get first dibs on any assets, those still working and contributing to the scheme get what is left over. That second group take the full loss of the deficit, they carry the weight of their portion of the deficit, and the portion that those who are retired should bear. They can be wiped out, losing hundreds of thousands of pounds of pensions whilst the pensioners lose nothing. The legislation that deals with this is imo, criminality set in law.

I weep not for pensioners in this country, but for the young people who are taxed and robbed to pay for the benefits given to pensioners everywhere.

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I weep not for pensioners in this country, but for the young people who are taxed and robbed to pay for the benefits given to pensioners everywhere.

Who, in turn, were taxed and robbed to pay for the benefits given to the previous generation. What goes around, comes around.

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Who, in turn, were taxed and robbed to pay for the benefits given to the previous generation. What goes around, comes around.

I dispute that. Existing pensioners didnt have to pay nearly as much to support the previous generation of pensioners. They didnt live as long, and the number of them as a proportion of the population was far lower.

And those retiring now are the first ones who had a much smaller number of children to raise, so the bill their was much smaller too. The money they paid in tax mostly went, on themselves.

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  • 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%



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