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Autoenrolment into workplace pension schemes has begun. For the next couple of years pension contributions will be sucking up wage increases.

I suspect 50% (at least) will opt out.

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I suspect 50% (at least) will opt out.

I suspect you're underestimating how apathetic people are. That's why opt-in and opt-out schemes show such massive differences in take-up generally.

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This has been an interesting week.

Osbourne has said everything is going fine and there is no problem that won't be resolved, and Mervyn King has promised that everything will work out fine as well.

The firm I work for has said they can't afford a pay rise for the third year running, and sent a less than enthusiastic memo explaining that auto-enrolment will cost them a 1% contribution.

Makes you wonder were the property and equity bulls get their lobotomies.

..._

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I suspect you're underestimating how apathetic people are. That's why opt-in and opt-out schemes show such massive differences in take-up generally.

Generally apathetic, yes. But when they see the damage to the bottom line - i.e. to their pay packet - they will be roused to action.

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Generally apathetic, yes. But when they see the damage to the bottom line - i.e. to their pay packet - they will be roused to action.

I doubt it. Utility bills take a big chunk out of the average pay packet, but the majority of people never switch supplier. The quote below is from Ofgem's Retail Market Review published 27th March 2013

1.26.

Our 2012 customer engagement tracking survey showed that nearly two thirds of consumers (63 per cent of gas customers, and 65 per cent of electricity

customers) claim they have never switched. We acknowledge that people's ability to recollect past events is imperfect, and our analysis of trends over time suggests the tendency to under-report previous switching behaviour is increasing. Therefore the actual proportion of those who have 'never switched' is almost certainly smaller than his. Nevertheless it does suggest that a majority of consumers perceive themselves to be largely inactive in the market.

1.27.

In summary, for a number of consumers engaging with the energy market appears to be of little interest or relevance. This is despite energy bills having increased significantly over the last few years and the availability of savings if consumers switch suppliers.

Q

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I suspect 50% (at least) will opt out.

The large employers that have gone through the statutory process so far are seeing opt out rates of less than 10%. My own employer has been contractually auto-enrolling employees for about 5 years and only 5% of employees have opted out. People really are that apathetic.

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I suspect 50% (at least) will opt out.

i think more than 80% will opt our of this back door taxation scheme, then they will make it compulsory, their friends in the city want all our money. the general public can't afford a 2nd pension over and above their state pension.

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i think more than 80% will opt our of this back door taxation scheme, then they will make it compulsory, their friends in the city want all our money. the general public can't afford a 2nd pension over and above their state pension.

My thoughts exactly.

Im all for pensions planning, but my own pensions planning. Not government 'we take you contributions and give them to civil servants because they strike and you down' thievery.

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Deflation in wages

Inflation in essentials.

Is that HMS Recovereh disappearing over the horizon?

Since the new meme is '(price) inflation = growth', then the recovery is on track and set to get even better.

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Where is it invested? Are you forced to buy government bonds...

No, you are not forced to buy government bonds. Where the money is invested depends upon the nature of the particular scheme adopted by your employer, and the investment choices you make for your money within that scheme.

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Does that make real inflation higher than nominal inflation.

In France "le pouvoir d'achat" - purchasing power - is talked about way more than in the UK. Put the French phrase into Google and see how many recent articles in the papers it turns up.

There's a whole section on prices and purchasing power on the website of INSEE, the national statistics body http://www.insee.fr/fr/publications-et-services/default.asp?page=dossiers_web/pouvoir_achat/revenu_pouvoir_dachat_intro.htm

I believe ONS has one document containing a dataset http://www.ons.gov.uk/ons/datasets-and-tables/data-selector.html?cdid=E9AO&dataset=mm23&table-id=3.7

The French have worked out what actually matters to the vast majority of the population.

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No, you are not forced to buy government bonds. Where the money is invested depends upon the nature of the particular scheme adopted by your employer, and the investment choices you make for your money within that scheme.

Well thats one nice thing to hear, surprising. Id still fear of them seizing pensions as the yanks seem to think Obama will do with their 401k's

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In France "le pouvoir d'achat" - purchasing power - is talked about way more than in the UK.

This is true but I'm not sure that it makes that much difference politically. One thing you can be almost certain of is that when politicians get mixed up in something they will come at the problem from the wrong direction and make things worse. I wouldn't want to go back to the days of ministers responsible for prices in the UK.

Actually the one European country which did respond correctly to the pressures of globalisation was Germany.

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Im all for pensions planning, but my own pensions planning. Not government 'we take you contributions and give them to civil servants because they strike and you down' thievery.

It's a pension in the same way as National Insurance is a pension.

If it looks like a duck, swims like a duck, and quacks like a duck, it's probably a duck.

The new "automatic opt-in" pension is just an increase in National Insurance.

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i think more than 80% will opt our of this back door taxation scheme, then they will make it compulsory, their friends in the city want all our money. the general public can't afford a 2nd pension over and above their state pension.

Maybe we need some sort of national insurance scheme.

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This is true but I'm not sure that it makes that much difference politically. One thing you can be almost certain of is that when politicians get mixed up in something they will come at the problem from the wrong direction and make things worse. I wouldn't want to go back to the days of ministers responsible for prices in the UK.

Actually the one European country which did respond correctly to the pressures of globalisation was Germany.

But the won't be laughing when they have no customers.

All they'll have is the infrastructure, knowledge base and skilled people to cry into their excellent beer :blink:

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  • 239 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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