interestrateripoff Posted October 1, 2012 Share Posted October 1, 2012 http://www.telegraph.co.uk/finance/personalfinance/pensions/9578180/Auto-enrolment-pension-scheme-for-millions-begins.html Up to 10 million people are expected to be eventually be enrolled in what is hailed as the biggest pensions revolution since David Lloyd George ushered in state pensions a century ago.A handful of the largest employers, with 120,000 or more workers, must place eligible workers into pension schemes, with firms gradually being enrolled in a staging process over the next six years. More than half a million people will be newly saving into a workplace pension by Christmas, according to Government estimates. Is this a good time to buy into the FTSE as all this money is going to have to be stored somewhere.... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted October 1, 2012 Share Posted October 1, 2012 10% of fec all is fec all. Quote Link to comment Share on other sites More sharing options...
winkie Posted October 1, 2012 Share Posted October 1, 2012 10% of fec all is fec all. .....any small amount must be better than nothing at all...after all anything that is not saved is sure to be spent.........I wonder what the final annual pension income it will purchase, It might be enough to pay the electric bill or pay for a journey somewhere. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted October 1, 2012 Share Posted October 1, 2012 Automatic enrolment is going to be like one of those psycho murderers in a slasher film that you cannot kill off. You have to opt out before a certain time limit expires or you won't get your contributions back. Even if you opt out your employer will automatically enrol you again every 3 years. If you are opted out but switch jobs you will be automatically enrolled by your new employer. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted October 1, 2012 Share Posted October 1, 2012 .....any small amount must be better than nothing at all...after all anything that is not saved is sure to be spent.........I wonder what the final annual pension income it will purchase, It might be enough to pay the electric bill or pay for a journey somewhere. Every £1 you don't spend and save will just mean you get less from the state via means testing. They plan to means test the LOT. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 1, 2012 Author Share Posted October 1, 2012 Every £1 you don't spend and save will just mean you get less from the state via means testing. They plan to means test the LOT. It's OK as most people won't be able to retire until they are too ill to work, at which point the state will then confiscate everything you've earned ensuring your family has an inheritance of £0 in fact the way it's going you'll run up a bill where your kids owe the govt money for the care costs which will be out of control. Quote Link to comment Share on other sites More sharing options...
winkie Posted October 1, 2012 Share Posted October 1, 2012 Every £1 you don't spend and save will just mean you get less from the state via means testing. They plan to means test the LOT. Buy gold. This is not investment advise. Quote Link to comment Share on other sites More sharing options...
Si1 Posted October 1, 2012 Share Posted October 1, 2012 http://www.telegraph...ons-begins.html Is this a good time to buy into the FTSE as all this money is going to have to be stored somewhere.... so you suppose it never used to go anywhere before this? Quote Link to comment Share on other sites More sharing options...
easy2012 Posted October 1, 2012 Share Posted October 1, 2012 Is this a good time to buy into the FTSE as all this money is going to have to be stored somewhere.... Yap... in fund manager's chicken coop... Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 1, 2012 Author Share Posted October 1, 2012 so you suppose it never used to go anywhere before this? Yes but now it has millions more suckers investors to leech off all chasing ever higher returns. Quote Link to comment Share on other sites More sharing options...
campervanman Posted October 1, 2012 Share Posted October 1, 2012 Why save for a pension when you can p155 it up the wall, invest in designer sportswear or the latest electronic gadgetry? Boo hoo, you got a pension and I can't be bothered to save for one one bleat bleat. Just wait until your employer takes 10 years of pension contributions to boost their share price/bonuses for senior excecs and then you get the blame for not saving for your future by the next generation. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted October 1, 2012 Share Posted October 1, 2012 Yes but now it has millions more suckers investors to leech off all chasing ever higher returns. i think the point is technically it doesnt, that money is already in the economy and either saved or spent and those savings, spendings are thus invested elsewhere along the chain. The main dynamic therefore is not that it goes into equities but more likely that alot more goes into buying Govt Debt as opposed to buying Chinese product Quote Link to comment Share on other sites More sharing options...
council dweller Posted October 1, 2012 Share Posted October 1, 2012 Just one thing....taking even a small percentage from low paid workers income will do nothing to help the economy. Rent up, gas up, electricity up, petrol up and now this.....and all from low or no pay rises. Quote Link to comment Share on other sites More sharing options...
Jack's Creation Posted October 1, 2012 Share Posted October 1, 2012 i think the point is technically it doesnt, that money is already in the economy and either saved or spent and those savings, spendings are thus invested elsewhere along the chain. The main dynamic therefore is not that it goes into equities but more likely that alot more goes into buying Govt Debt as opposed to buying Chinese product Whilst introducing legislation to increase the percentage of Govt debt the pension funds have to hold until it reaches 100%. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted October 1, 2012 Share Posted October 1, 2012 Whilst introducing legislation to increase the percentage of Govt debt the pension funds have to hold until it reaches 100%. slowly slowly catchee monkey Quote Link to comment Share on other sites More sharing options...
katchytitle Posted October 1, 2012 Share Posted October 1, 2012 Just one thing....taking even a small percentage from low paid workers income will do nothing to help the economy. Rent up, gas up, electricity up, petrol up and now this.....and all from low or no pay rises. Since the majority of the people who have been signed up to this scheme are probably the below median wage earners this policy will lower aggregate demand for any goods and services in the UK. I know they keep saying its only the cost of one pint of beer a week but in total its a lot of money that won't be spent now and saved up for the future (with the bankers and "professionals" taking 1% on the way in + "minimal" management fee). We are heading for a slow down in our economy as the purchasing on consumer staples and goods falls whilst the prices of basic goods and petrol rise. No more additional debt equals no more money velocity. In that environment investing in broad FTSE probably isn't a good idea although a few companies with robust margins and repeat business could at least hold their own for a few years without growth. Quote Link to comment Share on other sites More sharing options...
crash2006 Posted October 1, 2012 Share Posted October 1, 2012 Clever trick they government is doing, by restricting NS%I they have found a new way to get peoples money to pay for their debt, its cheap. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted October 1, 2012 Share Posted October 1, 2012 (edited) It's just the new NI. NI used to entitle you to a pension. If your under 40 it doesn't though, it's just tax. So we have started a new scheme, on TOP of NI. It will be you pension. And then in a few years time they'll say it doesn't, they'll say, I don't know, it goes to pay for your retirement healthcare or something. You'll need to save for a pension. Why aren't you saving for a pension they'll ask. So for your beenfit, they will make it compulsory and call it "National Pension". It's just a big tax increase on the poor. Remember all that money will be going into the big pension funds that the government is desperately trying to avoid having to bail out. Well news-flash, this is the bailout. Editing for crap typing Edited October 1, 2012 by RufflesTheGuineaPig Quote Link to comment Share on other sites More sharing options...
winkie Posted October 1, 2012 Share Posted October 1, 2012 This will be a great success and in a few years when the fund has built up the companies will be able to take a 'contribution holiday' and use the money for director bonuses. Later the government can change the rules and steal all the money back. It's just another tax which has a defined benefit now but this will change over time; like income tax which was introduced to pay for the Napoleonic wars which IIRC correctly have been over for some time. Nothing is guaranteed, nothing is risk free, anything and everything can change.......or earn it, spend it, don't borrow or save it. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted October 1, 2012 Share Posted October 1, 2012 (edited) Is this a good time to buy into the FTSE as all this money is going to have to be stored somewhere.... My first thoughts, even with the negative factor of employer's contributions weighing on profits. What alternatives do pension managers have....Treasuries in particular are in la la land. Edited October 1, 2012 by crashmonitor Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted October 1, 2012 Share Posted October 1, 2012 (edited) My first thoughts, even with the negative factor of employer's contributions weighing on profits. What alternatives do pension managers have....Treasuries in particular are in la la land. Surely you just use the money to buy your own shares? Edited October 1, 2012 by RufflesTheGuineaPig Quote Link to comment Share on other sites More sharing options...
Britney's Piers Posted October 1, 2012 Share Posted October 1, 2012 (edited) So Pensions...yet another so called private (City based) industry which is now de factor public sector, being sheltered from such free market forces like actually having to convince customers you are worth their money. Edited October 1, 2012 by Britney's Piers Quote Link to comment Share on other sites More sharing options...
Saberu Posted October 1, 2012 Share Posted October 1, 2012 .....any small amount must be better than nothing at all...after all anything that is not saved is sure to be spent.........I wonder what the final annual pension income it will purchase, It might be enough to pay the electric bill or pay for a journey somewhere. So just manage your own savings and investments, or if you are really smart start your own business Quote Link to comment Share on other sites More sharing options...
PopGun Posted October 1, 2012 Share Posted October 1, 2012 It's just a big tax increase on the poor. Remember all that money will be going into the big pension funds that the government is desperately trying to avoid having to bail out. Well news-flash, this is the bailout. +1 Quote Link to comment Share on other sites More sharing options...
winkie Posted October 1, 2012 Share Posted October 1, 2012 So just manage your own savings and investments, or if you are really smart start your own business I think the incentive is supposed to be your employer matches your contributions up to a certain percentage and you get tax relief. Quote Link to comment Share on other sites More sharing options...
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