Jump to content
House Price Crash Forum
rollover

Pensions revolution: Ministers plan shake-up to get savers investing in building projects

Recommended Posts

Quote

 

Radical pension reforms are being prepared by the Government to help millions of savers get better returns. Ministers across Whitehall are working on schemes to get pension funds investing in building projects ahead of the Chancellor’s Autumn Statement. Energy projects such as nuclear power stations, railway schemes including HS2 and new broadband roll-outs are most likely to benefit. It is seen as a “win-win” because savers would get a good return on investments in difficult circumstances. If successful, investments in infrastructure projects can often bring a yearly return that is 20 times what could be achieved through government bonds, according to experts.

Other areas of interest include getting the Treasury to take on the early risk of investing in building projects and extending a scheme that seeks funding for socially beneficial projects.

Senior figures in the Treasury and No 10 are now examining whether those barriers to investment can be lowered as part of their aim to create an “economy for all”.  Telegraph

 

 

The ponzi scheme must go on.

Share this post


Link to post
Share on other sites

Most folk would rather just have a reasonable return on their building society savings rather than getting involved in the dodgy casino.  So what is 20 times government bonds - the 10 year is about 0.8% so are they saying 16%  a year.

If it sounds too good to be true then ............................  

Or is it that the pension fund gets 15% of that for bonuses, plush offices, fine furniture, luxury carpets and shiny new cars etc and the saver gets the 1%?  Then when it all goes wrong the saver takes the hit?

Edited by billybong

Share this post


Link to post
Share on other sites
Quote

“People with assets have got richer,” Mrs May said. “People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer. A change has got to come. And we are going to deliver it.”

 

Didn't we have war bonds in WWI? Why not 'Build Britain Bonds' now?

It's clear that there are people out there with cash to invest (savers not getting any return etc) so chuck them a bit of return and invest the money in UK infrastructure. The recent pensioner bonds (or what ever they were called) show that there is a huge demand for such a thing. Now, I don't know the numbers - I can imagine that the amount of money raised through such a scheme may be peanuts relative to what's actually needed but at least it not going into dumb assets such as BTL, and indeed, may actually be a way of diverting money away from BTL.

Share this post


Link to post
Share on other sites
26 minutes ago, bluegnu said:

 

Didn't we have war bonds in WWI? Why not 'Build Britain Bonds' now?

It's clear that there are people out there with cash to invest (savers not getting any return etc) so chuck them a bit of return and invest the money in UK infrastructure. The recent pensioner bonds (or what ever they were called) show that there is a huge demand for such a thing. Now, I don't know the numbers - I can imagine that the amount of money raised through such a scheme may be peanuts relative to what's actually needed but at least it not going into dumb assets such as BTL, and indeed, may actually be a way of diverting money away from BTL.

HS2 the project with little or no return are you kidding me. War bonds, tell me how that worked out.

Why would any UK government sponsored project offer a return grater than a corresponding gilt, i.e. greater than the square root of F*** all.  

Share this post


Link to post
Share on other sites
39 minutes ago, bluegnu said:

It's clear that there are people out there with cash to invest (savers not getting any return etc) so chuck them a bit of return and invest the money in UK infrastructure.

Why do you think the government knows which infrastructure to build better than private investors do?

What infrastructure are you planning to build that will still be of any value in twenty years?

Share this post


Link to post
Share on other sites

I'm damned if I'm putting any of my own savings into nuclear new build or buying up house builders overpriced stock. 

As for new broadband rollouts, either make the relevant community pay or simply legislate to ensure it happens. Probably should be the second as it's equivalent of having a postal service nowadays. 

I'd certainly consider investing in community renewables or new build council housing stock - but little chance of those being encouraged by the present government. 

Edited by StainlessSteelCat

Share this post


Link to post
Share on other sites

If it's 20 times cheaper for the government to finance these projects by issuing Gilts, why don't they just do that? Don't they have a duty to get value for taxpayer money?

Share this post


Link to post
Share on other sites

 

5 hours ago, MarkG said:

Why do you think the government knows which infrastructure to build better than private investors do?

What infrastructure are you planning to build that will still be of any value in twenty years?

 

To be fair the private sector doesn't know what infrastructure to build either.

All it manage is to decide to either build or not build on a patch of land it owns or has control over, as long as that is in line with planning permission.

It can't do something like a new railway line by itself.

Share this post


Link to post
Share on other sites
3 hours ago, Dorkins said:

If it's 20 times cheaper for the government to finance these projects by issuing Gilts, why don't they just do that? Don't they have a duty to get value for taxpayer money?

...their friends in high places don't profit IMHO.

 

Its what ud call systematic fraud

Share this post


Link to post
Share on other sites
9 hours ago, bluegnu said:

 

Didn't we have war bonds in WWI? Why not 'Build Britain Bonds' now?

It's clear that there are people out there with cash to invest (savers not getting any return etc) so chuck them a bit of return and invest the money in UK infrastructure. The recent pensioner bonds (or what ever they were called) show that there is a huge demand for such a thing. Now, I don't know the numbers - I can imagine that the amount of money raised through such a scheme may be peanuts relative to what's actually needed but at least it not going into dumb assets such as BTL, and indeed, may actually be a way of diverting money away from BTL.

Cash to invest...in house that ate 2 or 3 times over priced.

 

Someone is taking the pi@@

Share this post


Link to post
Share on other sites
4 minutes ago, TheCountOfNowhere said:

Cash to invest...in house that ate 2 or 3 times over priced.

 

Someone is taking the pi@@

Fine by me. Prepare to be reaped.

Share this post


Link to post
Share on other sites
1 hour ago, TheCountOfNowhere said:

Hiky f@@@.  This is what I feared she meant when she said helping savers...actually helping builders and banks even more. The troies are ££££££ evil

I think I'm getting better at this now. I believed what May said for about 30 minutes before realising the reality will be closer to the the opposite.

Share this post


Link to post
Share on other sites

PFI2

Public Finance Initiative instead of Private Finance Initiative.

PFI investors did very well out of investing in such as the NHS. Hospitals costing 300 million in PFI payments for 30 million build costs.

It would be better if you could choose which individual projects to invest in. Prisons would be a good one?

 

Share this post


Link to post
Share on other sites
4 minutes ago, Democorruptcy said:

PFI2

Public Finance Initiative instead of Private Finance Initiative.

PFI investors did very well out of investing in such as the NHS. Hospitals costing 300 million in PFI payments for 30 million build costs.

It would be better if you could choose which individual projects to invest in. Prisons would be a good one?

 

NHS wise (+ GP's etc) I bought into Primary Health Properties (ticker: PHP) back in June 2015.  It's doing ok with a gain of 12% over that time and even with the gains forecast divi yield is still 4.6%.  If you can't beat 'em maybe join 'em.

Not sure about prisons though.

Share this post


Link to post
Share on other sites

As we are being forced away from SIPPs into lifetime ISAs I believe a last hoorah for grandfathered SIPPs will be the inclusion of residential properties in the portfolio (caveats. new build only (win for the builders), only half portfolio allowed and other 50% mortgages (win for the banks) and only for use as BTL). It's such an obvious choice I'm surprised we haven't see it happen already. Not that I'm advocating this.

Share this post


Link to post
Share on other sites
2 hours ago, wish I could afford one said:

NHS wise (+ GP's etc) I bought into Primary Health Properties (ticker: PHP) back in June 2015.  It's doing ok with a gain of 12% over that time and even with the gains forecast divi yield is still 4.6%.  If you can't beat 'em maybe join 'em.

Not sure about prisons though.

Take a look at the track record of this company. We've gambed in markets traditionally regarded as non-profit...

Hospitals. Prisons. Space exploration.

I say, good business is where you find it.

robocop4.jpg

 

 

 

Share this post


Link to post
Share on other sites
3 minutes ago, zugzwang said:

Take a look at the track record of this company. We've gambed in markets traditionally regarded as non-profit...

Hospitals. Prisons. Space exploration.

I say, good business is where you find it.

robocop4.jpg

Are you really saying that a UK REIT that buys/builds property and then leases back "...to general practitioners, NHS organisations and other associated healthcare users" is the same as Omni Consumer Products?

I believe in the past I've asked you (and suntory for that matter) where you are holding your wealth and what you are doing to take responsibility for your future in the world that we currently find ourselves?  I'm yet to receive a response and I'd genuinely like to know.  Who knows you might even convince me to do something different.

Share this post


Link to post
Share on other sites
2 hours ago, longtomsilver said:

As we are being forced away from SIPPs into lifetime ISAs I believe a last hoorah for grandfathered SIPPs will be the inclusion of residential properties in the portfolio (caveats. new build only (win for the builders), only half portfolio allowed and other 50% mortgages (win for the banks) and only for use as BTL). It's such an obvious choice I'm surprised we haven't see it happen already. Not that I'm advocating this.

 

efectocurioso_SerpienteCanibalismo.jpg

Share this post


Link to post
Share on other sites
4 hours ago, zugzwang said:

Take a look at the track record of this company. We've gambed in markets traditionally regarded as non-profit...

Hospitals. Prisons. Space exploration.

I say, good business is where you find it.

I'll leave the ED-209 demo to you.

Share this post


Link to post
Share on other sites

" If successful, investments in infrastructure projects can often bring a yearly return that is 20 times what could be achieved through government bonds, according to experts. "

From the OP. I guess it's 20 x a small number. I assumed they would have been investing in these things already or maybe the reg's mean they have to hold loads and loads of the gov' securities ?  talk about unintended consequences of QE!  

I guess the 'fix' will be to risk up the pensions. This might create a problem for BTL and probably a problem for future pensioners too!

Share this post


Link to post
Share on other sites

Are the government saying they will offer 8% yields when they can borrow for less than 2%?

Sounds like a bail in of the UK economy by softly taking control of pension assets.Imagine investing your pension in an estate of rabbit hutches build on marshland at 6 x local earnings in a deflationary depression.

A gold mine in the Lake District might be an option though.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   94 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.