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Pensions Debate As A Trigger?

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I'm slowly beginning to think that the debate on Pensions that is beginning as a result of the Turner report on pensions may act as a subtle trigger changing the way people think about houses and thereby taking one of the props away from the housing market.

I'm fortunate enough to be in a Final Salary pension scheme and yet there is still a good deal of uncertainty being provoked by the Turner report. Add in the recent David Willets speech (which I thought was excellent) and you have the beginnings of a real debate about how we provide for our future. If Gordon Brown unpicks the Alan Johnson/Public Sector Union deal then I may yet have to work another five years. And I'm one of the lucky ones. For many people, this debate might be an eye-opener to the fact they've NO provision for pensions. Now that house prices have stabilised, there is no pressing need to get on the ladder, as even the bulls aren't arguing that prices are about to explode. People might start to think that putting money into pensions is more important than putting it into overpriced property and so the slide will start.

I'm reasonably confident that SIPPS/Property A-day and all that will be nothing more than the sort of incoming ripple on the surface you see at the seaside when there is a big undertow washing out from the beach. It gives the impression the water is coming in when in fact the reverse is happening.

BTW - lets not get this thread distracted onto the merits of public sector pensions - my point is that I am indeed lucky and if I'm worried, how much more will others be?

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I'm slowly beginning to think that the debate on Pensions that is beginning as a result of the Turner report on pensions may act as a subtle trigger changing the way people think about houses and thereby taking one of the props away from the housing market.

I'm fortunate enough to be in a Final Salary pension scheme and yet there is still a good deal of uncertainty being provoked by the Turner report. Add in the recent David Willets speech (which I thought was excellent) and you have the beginnings of a real debate about how we provide for our future. If Gordon Brown unpicks the Alan Johnson/Public Sector Union deal then I may yet have to work another five years. And I'm one of the lucky ones. For many people, this debate might be an eye-opener to the fact they've NO provision for pensions. Now that house prices have stabilised, there is no pressing need to get on the ladder, as even the bulls aren't arguing that prices are about to explode. People might start to think that putting money into pensions is more important than putting it into overpriced property and so the slide will start.

I'm reasonably confident that SIPPS/Property A-day and all that will be nothing more than the sort of incoming ripple on the surface you see at the seaside when there is a big undertow washing out from the beach. It gives the impression the water is coming in when in fact the reverse is happening.

BTW - lets not get this thread distracted onto the merits of public sector pensions - my point is that I am indeed lucky and if I'm worried, how much more will others be?

And don't forget that employees could see an additioanl 4% coming out of their THP. Admittedely they can opt out, but the whole point of this part of the proposal is that they probably wont.

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Absolutely. If people stop thinking of houses as pensions and start thinking of pensions as pensions, the market will totally collapse: few people today can afford to buy a house at anything like current prices _and_ save adequate amounts to retire on.

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Absolutely. If people stop thinking of houses as pensions and start thinking of pensions as pensions, the market will totally collapse: few people today can afford to buy a house at anything like current prices _and_ save adequate amounts to retire on.

I think the report specifically warns people not to rely on houses as pensions but it may well fall on deaf ears. A lot of potential stock market investors still seem to have psychological hangovers from the dotcom era, gains in the last two years notwithstanding. So what is the alternative? Spend it and let the state look after you in old age! :lol:

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I think some who have bought recently will sart thinking this way - worrying about paying so much each month for a house. Whereas, those who bought 4 plus years ago will be thinking that they are sitting pretty re pensions and, if anything, this will be an incentive for them to NEVER consider dropping their asking prices.

Of course, the wider global economy is going to catch them out in the next 18 months or so. Those IRs are going up around the World and, it seems to me, only jerry-rigging in order to get Brown into No. 10 is stopping the same thing happening in the UK right now.

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  • 301 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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