Thursday, October 28, 2010

Dick Turpin, eat your heart out…

Private pensions to become compulsory for workers

I can't get my head around this; after all, isn't this the whole point of NI contributions? However, "Employees will still have the right to opt out of the pension arrangements..."

Posted by sibley's b'stard child @ 10:52 AM (1236 views)
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5 thoughts on “Dick Turpin, eat your heart out…

  • mark wadsworth says:

    Everybody should opt out at the earliest opportunity. It’s better for most individuals*, and far better for taxpayers’ collectively, as all these pension tax breaks are in fact subsidies to pension insurance manager fund trustee paper shuffler professionals companies.

    * even if it’s better for you, individually, then you have to remember that you are paying extra tax to subsidise yourself.

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  • Agree with s b’ c…

    Is this a personal pensions pot to top up any state pension? Is it transportable if you change job or are out of work for any period?

    Many companies have either closed or made their occupational pension arrangements unattractive, or if gone bust locked up peoples pension pots ot money has gone in to thin air……that is the situation that needs sorting out – not blaming employees for being feckless non-savers.

    I for one am very dubious of ‘personal pension schemes’ having had my wallet burnt in the past. Maybe it is better to organise your own savings pot (that you can dip in to or top up as required) and maybe live off that in retirement or but your own annuity come the time you finally decide or are allowed to retire.

    Also on top of deductions from salary for income tax and NI – this is yet another % bite out of take home pay.

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  • general congreve says:

    These are the pension funds that have to invest in UK gilts by govt. decree, is that right? So the govt. is now saying they are going to forcibly make you buy their gilts and fund their ever expanding debt by proxy.

    This will not end well.

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  • If John Hutton’s remit is only public sector pensions then it’s scope should be expanded to cover everyones .

    Other countries manage to have pension schemes open to everybody , why not the UK ?

    There will always be a divide between public sector and private workers whilst there isn’t transparency in the true cost of state pensions .
    Discount rates of 3.5% above inflation at zero risk on notional investments of teachers pensions are somewhat better than the less than 2% available on AA corporate bonds which annuity funds are forced to invest in .

    We need a proper solution for pensions for everyone , not forcing people to pay the spivs to bet it on the casino .

    Anything other than a proper national pension system run for the benefit of the citzens , not the financial services industry , will be yet another cludge to add the the list like the report that no-hoper Lord Turner fobbed us off with .

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  • @ 1. mw
    Agreed, state pensions are doomed, and you can easily do better privately, provided you can keep yourself informed.

    I’d want to steer well clear of NEST, it will probably lose value against living costs inflation and could even become quite risky.

    The withdrawal of SERPs could further impoverish pensioners to be, however the current arrangements are not sustainable.

    NI is just a piss take, it isn’t insurance for us, it’s insurance for the state against default i.e. another Tax!

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