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Workplace Pension Reform

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Don't know much about this new scheme, but I came across someone today who's not too happy.

The guy is a planning enforcement officer. As far as I could gather his employer will be taking £100 per month from his wages to fund the scheme. He reckons that will make the difference between him meeting the mortgage repayments and tipping into default. Has 2 kids, wife too ill to work. I didn't want to ask too many questions.

The anticipated effect of Obamacare in the US is that full time positions will tend to be reduced to part time. Less money in workers/debtors' pockets. Similar consequence?

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Who knows what they will do to pensions in 20 or 30 years time. Brown changed the rules for private pensions and Cameron extended the date you start getting the state pension. No longer matters if you have paid NI all your life everyone now gets the same. Annuity rates (yes you don't have to take an annuity) are way way lower than when when the pension was started .. IIRC projected rates were around 9% and today they are less than 6% so down by over 33%. Argentina IIRC decide to just take the funds. Better to have the cash in hand unless you are prepared to fund a speculative investment.

Spot on. Between 1998 and 2008 I had a small company which I put most of my savings into and there were good times and also times when I took little salary out. Trying to be sensible, I paid extra into the Second State Pension (S2P) as I thought a private pension would be too costly and less secure. The Second State Pension was abolished recently in favour of the flat rate pension. All that extra money I put into S2P has disappeared - been stolen - by the government. I have another small business now - and they want me to pay extra again? Jog on you tossers!

Edited by mikthe20

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You can opt out.

What he said.

Most people being auto-enrolled will opt out straight away as they don't want to pay into a pension, then have to opt out again ?two years later.

It creates huge admin for pension departments but I do see some point to it. A significant number of people do not think about their pension, to find themselves auto-enrolled in a low cost pension scheme might be just what they want but they couldn't be bothered to sort it out themselves.

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It's not a government pension. Your employer has to chose a default private pension scheme that staff get enrolled in if they don't opt out. We did it at work in anticipation of this kicking in a little while ago. There is a scheme designed for the auto-enrolment set-up that operates under a non-for-profit independent quango, that might be what you're thinking of. There's no reason why your employer should chose that particular pension scheme though unless they're particularly lazy.

(I didn't opt out. My theory on pensions has previously been rather cautious for the reasons stated above. For the current scheme the company generously matches up to 3% earnings, plus paying in both employer and employee NI that they saved on the salary sacrifice, so you sacrifice 3% of salary and get 6.7%-odd in your pension. I'm happy to take those odds on some city wide boys buggering it up at some point in the next 40 years, and my salary is low enough that I won't lose much even if they do!)

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The pension is *****. I would opt out, I have enrolled in a much better pension before and after thinking about it rationally, opted out.

Without decent housing you won't live long enough to claim a pension anyhow.

A homeless person dies on average at 47. Tis the people living in the houses built from 1930-1980 who are living till 77 on average...

You'd have to be over 50 to have really benefited from the house-building of the past. In your twenties in the early 1980s, before the rate of building began to decline...

Since then, average living standards downhill. And in turn, in some 77 - 2X - 15 years on from 1980 we will see (in the next decade or two). To be fair, the fall in life expectancy is soon going to descend upon us.

Edited by Self Employed Youth

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  • 246 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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