shindigger Posted March 12, 2015 Share Posted March 12, 2015 The pension jamboree door being thrown open, and drugs and whores included in the GDP, are stories straight out of the Daily Mash, but they're real. Its ******ing incredible really. Quote Link to comment Share on other sites More sharing options...
wotnocrash Posted March 12, 2015 Share Posted March 12, 2015 Minimum income for BTL is usually 25k.Mortgage works criteria is must be under 70 and proof of income is only required if you don't own another property either as a BTL or OO. Pension income (including state pension) qualifies too. Quote Link to comment Share on other sites More sharing options...
Inoperational Bumblebee Posted March 12, 2015 Share Posted March 12, 2015 As mentioned in last week's Moneyweek, it is unlikely to affect the housing market too much as, given the age of the people withdrawing from their pensions, they are unlikely to be able to get mortgages. I hope they're right. There's always the possibility some will be gifted to younger FTBs. Quote Link to comment Share on other sites More sharing options...
long time lurking Posted March 12, 2015 Share Posted March 12, 2015 This could destroy the pensions and insurance firms. No chance, unless the deal is good for them. This would be my guess but the cynical side of me thinks this would be a way for TPTB to gain easy access to that pot of money when it comes to care home fees, an ageing population cost a lot of money to look after, if that money is locked into a pension it`s out of bounds for the government Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 13, 2015 Share Posted March 13, 2015 This could destroy the pensions and insurance firms. No chance, unless the deal is good for them. I don't see how Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 13, 2015 Share Posted March 13, 2015 It's easy to get a BTL mortgage in retirement, as the assessment is based on the rental income, not your salary or pension There's that assumption again that there's infinite demand and money to pay rent. There's not. Round me, its the number of multi-month voids are noticable. To take money out of a house you need to sell it - my preferred way. Or borrow money against the assumed equity - the banks preferred way. Going wit option means you have to meet the repayments. No easy on a pension - or esp. on DC pension at the moment. Any rent shortfall will build up, so will any voids. All piling up, all compounding interest. Then the OOO falls in price , breaching. Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 13, 2015 Share Posted March 13, 2015 I don't see how Me neither. Most life companies have been killed already by their own greed + stupidity. If you shop around around, annuities offer an OK, risk free income. The fact the pay outs are low is down to the price of gilts and the risk-fee nature of the product. Quote Link to comment Share on other sites More sharing options...
Digsby Posted March 13, 2015 Share Posted March 13, 2015 There's always the possibility some will be gifted to younger FTBs. This is my concern Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 13, 2015 Share Posted March 13, 2015 This is my concern But so what? Doesn't make housing less overpriced or improve the fundamentals Quote Link to comment Share on other sites More sharing options...
Quicken Posted March 13, 2015 Share Posted March 13, 2015 I don't see how http://www.moneymarketing.co.uk/news-and-analysis/pensions/budget-2014-insurers-shares-tumble-on-budget-annuity-announcement/2008144.article The Chancellor’s announcement that from next year pension savers will no longer have to buy an annuity to take money out of their pensions has rocked the share price of the UK leading annuity providers. Only an hour after George Osborne finished delivering his speech, specialist retirement income provider Just Retirement Group fell by 30 per cent. The biggest initial drop from the big traditional annuity providers is Legal and General, whose share price has fallen by 11 per cent. Standard Life’s share price had fallen by 3.7 per cent, Aviva’s share price had fallen by 7.4 per cent, and Prudential had fallen by 2.6 per cent. Shares in Friends Life parent Resultion Limited fell by 7.3 per cent. Quote Link to comment Share on other sites More sharing options...
Quicken Posted March 13, 2015 Share Posted March 13, 2015 This would be my guess but the cynical side of me thinks this would be a way for TPTB to gain easy access to that pot of money when it comes to care home fees, an ageing population cost a lot of money to look after, if that money is locked into a pension it`s out of bounds for the government Yes, it could impact many forms of means testing. Quote Link to comment Share on other sites More sharing options...
Digsby Posted March 13, 2015 Share Posted March 13, 2015 But so what? Doesn't make housing less overpriced or improve the fundamentals It gives a whole bunch of currently priced out youngsters the funds to go and boost demand. I really need prices to come down here soon, and I could do without another mini boom off the back of BOGAG (Bank Of Gran And Grandad - coined here first) Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 13, 2015 Share Posted March 13, 2015 http://www.moneymarketing.co.uk/news-and-analysis/pensions/budget-2014-insurers-shares-tumble-on-budget-annuity-announcement/2008144.article That's answering a different question Annuity providers have already taken the fees for existing annuities. Please explain how redeeming existing annuities will negatively affect the providers. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 13, 2015 Share Posted March 13, 2015 It gives a whole bunch of currently priced out youngsters the funds to go and boost demand. I really need prices to come down here soon, and I could do without another mini boom off the back of BOGAG (Bank Of Gran And Grandad - coined here first) OK, agreed, fair enough Quote Link to comment Share on other sites More sharing options...
Quicken Posted March 13, 2015 Share Posted March 13, 2015 That's answering a different question Annuity providers have already taken the fees for existing annuities. Please explain how redeeming existing annuities will negatively affect the providers. Yes, but surely cancelling an annuity would involve the insurer having to pay back the principal (less some discount). The devil is in the size of the discount/redemption fee/whatever. No? Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 13, 2015 Share Posted March 13, 2015 Yes, but surely cancelling an annuity would involve the insurer having to pay back the principal (less some discount). The devil is in the size of the discount/redemption fee/whatever. No? Yes I suspect they will profit from it And then chase a different market Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted March 13, 2015 Share Posted March 13, 2015 (edited) Surely we are not talking scrapping an annuity, that's not possible. A third party fund buying up policies which cease to be paid out on death. Bundling to even out longevity risk. As the fund is hopeful for a long life, no bumping off risks. Tontines (the opposite of that) were made illegal because the fund's members had the opposite incentive, bumping each other off. Edited March 13, 2015 by crashmonitor Quote Link to comment Share on other sites More sharing options...
Quicken Posted March 13, 2015 Share Posted March 13, 2015 Seems you are right Crashmonitor. I thought we were talking about annulment. http://www.telegraph.co.uk/finance/personalfinance/pensions/11468752/New-pension-rules-to-let-retired-savers-cash-in-annuities.html A second-hand annuity market would allow retired savers to sell their lifetime contracts to the highest-bidding insurance companies, which would offer cash. Pensioners may prefer a lump sum to a guaranteed income if it enables them to make home improvements, pay off a mortgage or give an early inheritance. Others might want to swap their annuity for a more suitable policy, such as a deal that provides income to their spouse when they die or takes into account medical conditions. Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 13, 2015 Share Posted March 13, 2015 Seems you are right Crashmonitor. I thought we were talking about annulment. http://www.telegraph.co.uk/finance/personalfinance/pensions/11468752/New-pension-rules-to-let-retired-savers-cash-in-annuities.html I thought that too Fair play Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 13, 2015 Share Posted March 13, 2015 The BBC article has some defined benefit schemes will be allowed to be transferred. I don't know what the BbC schemes are? Possibly defined benefit of some description. Quote Link to comment Share on other sites More sharing options...
R K Posted March 15, 2015 Share Posted March 15, 2015 Express are going with Inheritance tax cut. Either raising threshold to £1m or excludign family home from inheritance tax. If not in the budget (libdem opposition) then it will be in the Shapps/Stockheath Party manfesto. So a permanent wealth transfer from poorer north to richer south (I refuse to link to the express - youll have to do it yourself) Quote Link to comment Share on other sites More sharing options...
juvenal Posted March 15, 2015 Share Posted March 15, 2015 Express are going with Inheritance tax cut. Either raising threshold to £1m or excludign family home from inheritance tax. If not in the budget (libdem opposition) then it will be in the Shapps/Stockheath Party manfesto. So a permanent wealth transfer from poorer north to richer south (I refuse to link to the express - youll have to do it yourself) I fear nothing... http://www.express.co.uk/news/politics/564055/Inheritance-tax-cut-George-Osborne-Budget-plans-reform-death-duty Quote Link to comment Share on other sites More sharing options...
Eddie_George Posted March 15, 2015 Share Posted March 15, 2015 BTLs and 2nd homes to be taxed heavily..... Wishful thinking I know. Quote Link to comment Share on other sites More sharing options...
billybong Posted March 15, 2015 Share Posted March 15, 2015 Yesterday's express headline was "Beware: Siberian Freeze On The Way". I believe them (thousands wouldn't) if they're referring to the UK economy under the LibLabCon. Quote Link to comment Share on other sites More sharing options...
cock-eyed octopus Posted March 16, 2015 Share Posted March 16, 2015 Am I the only one who can't see anything wrong with this? It may also force annuity providers to give a better deal - I've read several comments from people inside the industry who said it's a licence to print money. Quote Link to comment Share on other sites More sharing options...
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