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BigBang

Another Blow For The Younger Generation

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Most people below 30 in the private sector are no longer able to get a generous "final salary" pensions because most companies have closed these schemes because they are unaffordable. There are a lot of reasons why they are unaffordablem, some of which is the fault of the company not putting in enough contributions, or having pension holidays, but the main reason they are unaffordable is because generally employees put in less money during their working life than they expect to get out of the fund in retirement based on their "final salary".

So most of those in the baby boomer generation have pulled off another one - getting more money from their pension fund than they put in courtesy of existing shareholders whose company profits are being used to fund the difference between what they put in and what they take out.

In the case of public sector workers, its the taxpayer funding the difference. Yet the taxpayer base is increasingly being made up of the younger generation who are not afforded the same pension rights as the older generation. Most people in the younger generation are only offered Money Purchase pension schemes which are like a bank account - what you contribute during you working life is what is available when you retire. There is no risk to the company or the government of having to fund their employees retirement if their pension pot is not big enough by the time they retire. So in effect, the younger generation are yet again getting a raw deal compared to the baby boomer generation.

For all those baby boomers whose companies have not remained solvent and therefore cannot afford to use the company profits to fund the unsustainable pension benefits of ex-employees, they want the "government" - ie - the younger generation who are currently paying tax to pay the difference between the pension fund value (ie the employee pension contributions during their working life) and the "final salary" value which the company normal funds out of annual profits.

I for one see this as yet another exploitation of the younger generation who come out of uni with massive debts, have no chance of getting onto the housing ladder because the older generation own most of the housing assets, and are now asked to pay extra out of their taxes to support the older generation who have pensions that the younger generation have no hope of obtaining. The retirees in this article aren't stripped bare - they can still withdraw the funds in the company pension scheme that have been accrued during their working lives - but they cannot have company profits now to top this amount up to their "final salary" amount because the companies no longer exist. These people are just unfortunate enough to be in the situation that most younger working people now face (you only get what you put in) - but of course that's not good enough for the baby boomers...let's get the younger generation to pay again!

http://news.bbc.co.uk/1/hi/uk_politics/5227522.stm

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But the last laugh will be on the boomers, as the companies who promised them fat pensions go bankrupt.

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But the last laugh will be on the boomers, as the companies who promised them fat pensions go bankrupt.

Which is why the government has brought in a ridiculous pensions guarantee..... - buy those votes today and mortgage tomorrow - the taxpayers will fund it for the next 30 years.

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Here's my usual comment on the issue;

If only the young would get off their backsides, stand up for themselves and bl**dy vote!!! I appreciate most people here are probably interested in politics/economics etc, but you will probably find most under 30-35 couldn't give a damn and that is why the government is robbing them. The older generation are more likely to vote so it's hardly surprising that politicians pay them more attention.

Unless the young stop blowing their money on big nights out, bling, holidays and take an interest in their financial well being their tough luck.

Golden Shower, age 32.

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If only the young would get off their backsides, stand up for themselves and bl**dy vote!!!

Should we vote for the guys that...

* let birth rates fall below replacement

* failed to invest in anything that was real

* fiddled and lied while the economy shrank as a result

* exhausted the next generation's capacity to service their current and future liabilities

... or the other lot?

Screw popularity contests - the demographic curve is way stacked against that idea - sell 'em fear and greed in equal measure (they're insatiable for both) - and look to your own young.

The worst generation, indeed.

Edited by ParticleMan

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If only the young would get off their backsides, stand up for themselves and bl**dy vote!!!

Who for? Only Labour and Tories can win, and they're both old farts' parties.

On top of which, the winner of a British election is decided by a small number of people in a small number of contested constituencies. The rest of the votes are pretty much irrelevant.

Much better to 'vote with your feet' and get out than try to fix a country that's doomed.

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Guest Alright Jack

Here's my usual comment on the issue;

If only the young would get off their backsides, stand up for themselves and bl**dy vote!!! I appreciate most people here are probably interested in politics/economics etc, but you will probably find most under 30-35 couldn't give a damn and that is why the government is robbing them. The older generation are more likely to vote so it's hardly surprising that politicians pay them more attention.

Unless the young stop blowing their money on big nights out, bling, holidays and take an interest in their financial well being their tough luck.

Golden Shower, age 32.

No, I disagree. Voting won't achieve anything now, the system is too corrupt.

The only way to protect yourself is to cut the head off the hydra. The vehicle for this transfer of wealth is the currency. Don't hold it. Drop it like the hot potato that it is. It will soon crash and burn and then the boomers and oldies will have NOTHING and the power will be right where it belongs with the honest young working population.

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No, I disagree. Voting won't achieve anything now, the system is too corrupt.

The only way to protect yourself is to cut the head off the hydra. The vehicle for this transfer of wealth is the currency. Don't hold it. Drop it like the hot potato that it is. It will soon crash and burn and then the boomers and oldies will have NOTHING and the power will be right where it belongs with the honest young working population.

How do you propose we do that? My local Tesco don't accept dollars or yuan... :ph34r:

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Here's my usual comment on the issue;

If only the young would get off their backsides, stand up for themselves and bl**dy vote!!! I appreciate most people here are probably interested in politics/economics etc, but you will probably find most under 30-35 couldn't give a damn and that is why the government is robbing them. The older generation are more likely to vote so it's hardly surprising that politicians pay them more attention.

Unless the young stop blowing their money on big nights out, bling, holidays and take an interest in their financial well being their tough luck.

Golden Shower, age 32.

I suppose in the 'old days' / pre Thatcherism the Unions would be opposing such eroding of pensions. It seems to me easier to be part of a pressure group or Union that could get a result than achieve any sort of change thru the ballot box. Perhaps the young either need to form or join a pressure group which (would could then campaign on it's issues and vote as a block for the Main party which adopts it's views) or actually go out and join a political party and attempt to change from within. So I agree there may be an element of getting active, but voting alone may not be enough. The existing parties will be for old fogies if the young dont get involved one way or another!

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Pensions ... votes ... priced out of property ... BTL investors turning you into life long renters

Sorry, but eventually you are going to have to fight for a fair deal.

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nah, I'll make some quick cash and run. go live somewhere cheap... poland...slovakia maybe...

:P

Your call. No-one would live anywhere if every time the going got rough, the rough got going.

Having said that, I'd ****** off from here in a flash if it wasn't for the kids.

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Who for? Only Labour and Tories can win, and they're both old farts' parties.

On top of which, the winner of a British election is decided by a small number of people in a small number of contested constituencies. The rest of the votes are pretty much irrelevant.

Much better to 'vote with your feet' and get out than try to fix a country that's doomed.

I agree and disagree with your statement, Mark. I suspect if the young started to get motivated about their well being the politicians would listen and do something. If they fear for their cushy jobs and pensions, they would do something. That's why the system is stacked towards the baby boomer generation, they have the spending power and votes in it.

Couldn't comment on the consituency situation you mention, I don't know enoug of the breakdown.

As for emmigration, well it may not be cheap in most places in the world now but given that the young are screwed here, do not seem interested in politics/economics enough to improve their lot I would agree that this i the best long term course of action to take.

Europe is dying and the politicians are allowing it.

All IMO of course.

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Guest Alright Jack

How do you propose we do that? My local Tesco don't accept dollars or yuan... :ph34r:

Sure, you get paid in credits (money that the government or someone else borrowed at some point and spent into the economy) and you can only pay for things using those credits. FIAT money only keeps one part of the bargain.

1) Exchange Medium.

2) Store of value.

In my opinion, it is obvious by now that [2] is blatently not the case. How can it be the case if the total amount of it is increasing at an ever accelerating pace?

What I mean by drop it like a hot potato is just spend it. If you want to have savings, then you have to use bullion. Alternatively buy stuff that has real value. Once everyone is doing this (as they eventually will) we are in hyperinflation and the injustice ends. They will try to issue a new currency but to make it work (get people to use it) it will need to be commodity backed... at first, then the game will start over again.

If you don't completely participate in the system, then you can't be completely ripped off by it.

(Larry Bates)

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This thread is spot on the young are now experiencing the worst financial position in history because the old have all the housing wealth and pension wealth.the over 45s now control 80% of the Nation's wealth,the highest proportion in history.Only a depression could redress the balance.

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What's the point in voting?, I'm nearly 31 and have never voted in my life 'cos it doesn't matter which party are in power the outcome will be the same. I don't understand how these Public School/Cambridge/Oxford eductated morons feel that they are any more qualified to run a country that they've only had a cossetted, priviledged view of than the Working Classes who know exactly how hard it is to live here...The present Political Parties are totally out of touch with reality and this is reflected in their decisions, they're all just liars and thieves who are exercising their powers to rob decent, hard-working people of what little money they have. I was always brought up to believe that Great Britain was the best Country in the World, maybe it was once but I've hated this Country and living here for many years now and things aren't going to change unless some drastic action is taken, and that's not gonna happen 'cos too many people in this Country prefer to roll over and play dead whilst entrusting their futures to a gang of suited knobs.

People don't seem to realise that there are more of us than them, all it takes is a bit of orchestration and revolution to turn things to our advantage, but most people carry on letting the world pass them by, indifferent to the treachery all around them and accepting it as normal life 'cos it's been going on for so long..

The only solution is to BOMB PARLIAMENT with all the smug, snoozing, hard-baked theives in it! :angry:

msp

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that's not good enough for the baby boomers...let's get the younger generation to pay again!

http://news.bbc.co.uk/1/hi/uk_politics/5227522.stm

Well, situations change over time. Previous generations had to fight a couple of world wars but generally so far in this country peoples ‘standard of living’ has improved as time goes on.

The boomers had to go thru boom & bust cycles in the past. They experienced problems so you can’t say previous generations have had it all that easy.

Some of the reasons for what is happening now are that there is a strong drive for businesses to keep their costs down due to tough competition (companies who outsource to India for example become more competitive).

Also the cost of implementing new security and legislatory rules. At the same time the Government has to raise more funds via tax & other measures such as (not) funding education to service a growing national debt.

Unions are now weaker and seem to not want to make a stand against outsourcing abroad or eroding of employee benefits.

It seems that the Government are expecting parents (ie. Boomers) to help their kids foot the bill for their education, property purchasing etc (even contributing to their kids retirement via inheritance)

So, it’s hardly a situation of Boomers vs the young. The whole population will be under this burden one way or another.

There could be a better way forwards if the Government could set more visionary long term goals – Such as getting business (especially mega-rich oil companies for example) to contribute more funds to the training & education costs as it’s business who benefit from the trained workforce

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The only solution is to BOMB PARLIAMENT with all the smug, snoozing, hard-baked theives in it! :angry:

msp

Just what this site needs - another head-banger <_<

Can you point to any revolution which achieved its objectives, delivered the promised utopia, and led to long term happiness for the people?

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you obviously weren't around in the early 80's, when youngsters couldn't even get jobs.

Or the early 70's. Or the 30's.

Error Casual Observer,I left school in June 1980 with unemployment heading for three million.It was a great time to be young,you could pick a house up for 10k, pick upshares at ridiculously low price to earnings ratios etc.A chimp could make money in those days.You are confusing income(todays young)with asset wealth and opportunity(my generation).The young need a depression if they want to get rich.

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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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