TheCountOfNowhere Posted February 26, 2016 Share Posted February 26, 2016 Yes, they do. You can opt out. If you have half a brain..... Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted February 26, 2016 Share Posted February 26, 2016 (edited) Hence why I opted out of my pension scheme. (I'm 27) Pension reforms and liberation- Who benefits: Financial Services Pension auto enrolment- Who benefits: Financial Services Conservative Party- Who funds: Financial Services Following the money leads me to the City of London creaming it again with the help of Osbourne and co. +10 It's a CON. They will eventually make it compulsory...at that point....LEAVE.....or start protesting Edited February 26, 2016 by TheCountOfNowhere Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 26, 2016 Share Posted February 26, 2016 I sense a scandal brewing here.... It's ok the tax payers have got money to pay compensation. Quote Link to comment Share on other sites More sharing options...
evetsm Posted February 26, 2016 Share Posted February 26, 2016 (edited) I think compulsory pensions are a distinct possibility, the chances of being able to save enough to retire are increasingly slim - that being the case, why put money into a pension voluntarily? Think its safe to say TPTB want to avoid a scenario of people expecting the state to provide pensions - far too expensive.I see south Africa (and others) have legislated a compulsory pension that is locked up for 30 years! You cannot touch it for 30 years the govt says, because literally you cannot be trusted to save your pension yourself. So you must give it to the crooks who crashed the world in 2008 and look like they're going to crash it again, because they do know how to look after your pension savings!? This just gets me so enraged I fear for my health. and... to repeat, this scheme is compulsory! Soon coming to a country near you. Edited February 26, 2016 by evetsm Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted February 26, 2016 Share Posted February 26, 2016 Can you see that lasting? One thing about pension legislation is it that NEVER seems to stop morphing. The recent changes have been hugely positive for DC pensions : 1. Salary sacrifice (could disappear but make the public sector pension even more outrageously advantaged) 2. Low cost SIPP, dramatically lowers the cut of the city boys 3. Clean fund pricing (as above) 4. Take what you want, when you want. 5. No more forced annuity 6. High effective marginal tax rates make pensions the only motivator for some high earners to stay in UK More changes, no doubt. I struggle to see how it could get much better. There are many way it could get much worse for those in DC pensions but that makes the DB benefits even more outrageously good in comparison. I still doubt whether they have the nerve to limit DB pensions (issues with the 20x multiplier and late-year contributions above £40Kp.a) My best guess is that the only change will be that the maximum annual contribution will be limited to £30K and keep the £1M max. That is enough to save a few £M. Most other proposals are an admin nightmare. - Public sectors pensions are equivalent to salary sacrifice, pretty unreasonable to take that away for just the private sector - Removal of 25% PCLP means not pensions worth it for basic rate taxpayers - A 30-33% flat rate causes all sorts of distortions (e.g. moving contributions between spouses) - Reintroducing forced annuities - bit soon for a U-turn. - Loss of preserved rights - very rare and pretty unpopular Quote Link to comment Share on other sites More sharing options...
porca misèria Posted February 27, 2016 Share Posted February 27, 2016 When a pension or pensions pays out less than £10k PA everything is tax free anyway.....most people's work pensions I would say over a working lifetime would payout less than that...debt and rent still to pay... Once you reach state pension age, that's not quite true, as the basic state pension consumes a big chunk of your tax-free allowance. I think the ideal retirement income is a mix: some pension, some tax-sheltered investments. Have made efforts to move myself in that direction, and will continue to do so while I'm earning. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted February 27, 2016 Share Posted February 27, 2016 My best guess is that the only change will be that the maximum annual contribution will be limited to £30K and keep the £1M max. That is enough to save a few £M. Most other proposals are an admin nightmare. Indeed, some of what's been said sounds a lot like softening us up for something that'll seem much more reasonable by comparison. Though I'm not convinced by your specific guesses, and would note that admin nightmares have been a key plank of Osbrownomics since the turn of the century. Quote Link to comment Share on other sites More sharing options...
MrPin Posted February 27, 2016 Share Posted February 27, 2016 The pension industry is IMPO a right con. Unless you work in the pension industry. Quote Link to comment Share on other sites More sharing options...
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