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Pension Autoenrolment

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    #11
    Originally posted by rl4engc View Post
    They could have played a blinder here; I don't know what % of new employees will opt out, but let's say it's high at 25%. That's 75% of new UK employees automatically investing 8% of their salaries into the economy. I wouldn't be surprised if they've issued guidance to the pension providers that by default these should go into a default fund made mainly of UK assets and bonds, with a bit of global just to balance it. Either way, that's a lot of extra cash that's going to be invested "somewhere" isn't it?
    Auto-enrolement is an example of economic nudge theory at work.

    The opt-out rate is very low. It is guessed that people will not start to opt-out of them until probably next year when the contribution goes up to a percentage amount that they can see makes a difference to their take home pay.
    "You’re just a bad memory who doesn’t know when to go away" JR

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      #12
      Originally posted by SueEllen View Post
      The pensions people get now are not final salary pensions which allow the employer to dip into their employees pension pots a la Maxwell. They are either state ones e.g. NHS which are ultimately backed by the government, or defined contribution pensions which are administrated by external companies like Aviva and Prudential.
      That old City proverb:

      Never lend money to a man whose shirt is a darker colour than his tie, and never lend money to Robert Maxwell.

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        #13
        My ex worked as a solicitor for local government and somehow had quite close ties with the people in charge of pensions there. Her advice to anyone and everyone was don't bother, the whole thing is going to implode. Investments such as property would be a better bet.

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          #14
          Originally posted by mattfx View Post
          My ex worked as a solicitor for local government and somehow had quite close ties with the people in charge of pensions there. Her advice to anyone and everyone was don't bother, the whole thing is going to implode. Investments such as property would be a better bet.
          Local government pensions are a mess.

          I've been told for decades by a family member how messy they are. Funny thing is because she would go on in detail about it I switched off and the only thing I remember is local government pensions are a mess.

          Anyway this link gives a clue - linky

          However NHS, teachers, civil service and other state pension schemes are all different. This means you can't say as a blanket rule they are all going to implode.
          "You’re just a bad memory who doesn’t know when to go away" JR

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            #15
            Originally posted by SueEllen View Post
            Auto-enrolement is an example of new taxes at work.
            FTFY

            It's not auto-enrollment, it's new NICs for employee and employer that will combined get to very high level (8%!!!) very quickly.

            It's opt out for now, but only for now

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              #16
              Originally posted by AtW View Post
              FTFY

              It's not auto-enrollment, it's new NICs for employee and employer that will combined get to very high level (8%!!!) very quickly.

              It's opt out for now, but only for now
              No it is specifically for addition pension to the state one - so not NICs. NICs is for your benefits entitlement, including state pension, and the NHS*


              *Yes we all know it's paid from general taxation but NICs just gives your entitlement to it.
              "You’re just a bad memory who doesn’t know when to go away" JR

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                #17
                Originally posted by SueEllen View Post
                No it is specifically for addition pension to the state one - so not NICs. NICs is for your benefits entitlement, including state pension, and the NHS**Yes we all know it's paid from general taxation but NICs just gives your entitlement to it.
                It is NICs or more precisely income tax!

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                  #18
                  Originally posted by SueEllen View Post
                  Local government pensions are a mess.

                  you can't say as a blanket rule they are all going to implode.
                  They are a massive mess. Like you I also switched off halfway through the conversation when it got to running deficit amounts and percentages and... zZZzzzZzz.

                  I do agree with others - auto enrollment is just another stealth tax that we will be unlikely to see the benefit of. The chances of someone my age getting cancer and pegging out before i'm able to receive my state pension is getting higher and higher with the rising age you become eligible for your pension and the continual increase in likelihood you will get cancer in some form.

                  There is no way to retrieve your state pension if you are terminally ill (I tried when my mum was given a few months to live and wanted to do some stuff) - you get a £2,000 payment. That's it. Oh, sorry, you also get some Disability Living Allowance, which takes months to arrange. So yeah - worthless. I doubt the government will do ANYTHING to address that, despite contributing your 8% to a pension pot for however many years.

                  Even the extraction of her private pension was a painful and time consuming process.

                  They could at least be a little more transparent about it and not treat us like idiots.
                  Last edited by mattfx; 1 December 2017, 14:35.

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                    #19
                    Originally posted by mattfx View Post
                    They are a massive mess. Like you I also switched off halfway through the conversation when it got to running deficit amounts and percentages and... zZZzzzZzz.

                    I do agree with others - auto enrollment is just another stealth tax that we will be unlikely to see the benefit of. The chances of someone my age getting cancer and pegging out before i'm able to receive my state pension is getting higher and higher with the rising age you become eligible for your pension and the continual increase in likelihood you will get cancer in some form.

                    There is no way to retrieve your state pension if you are terminally ill (I tried when my mum was given a few months to live and wanted to do some stuff) - you get a £2,000 payment. That's it. Oh, sorry, you also get some Disability Living Allowance, which take months to arrange. So yeah - worthless. I doubt the government will do ANYTHING to address that, despite contributing your 8% to a pension pot for however many years.

                    They could at least be a little more transparent about it and not treat us like idiots.
                    Private pensions you can get at 55 though they want to change that to 10 years before retirement. If you peg it before that time you can get all/part of the pot paid out to a spouse or other dependants.

                    Not sure what the rules are for auto-enrolement pensions, but some employers have always had their own pension schemes that beat the minimum standard of auto-enrolement.
                    "You’re just a bad memory who doesn’t know when to go away" JR

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                      #20
                      Originally posted by mattfx View Post

                      I do agree with others - auto enrollment is just another stealth tax that we will be unlikely to see the benefit of. The chances of someone my age getting cancer and pegging out before i'm able to receive my state pension is getting higher and higher with the rising age you become eligible for your pension and the continual increase in likelihood you will get cancer in some form.
                      When pensions were first planned you were only suppose to live about 7 years on one then peg it. Unfortunately in general those who were born during the war and the baby boomers have lived too fecking long.

                      Luckily for the economy those who are under 30 are fat lazy feckers who have been force fed sugar and breathed loads of pollution so they will keel over before claim their pensions or only live a few years on them, like how pensions were originally planned.
                      "You’re just a bad memory who doesn’t know when to go away" JR

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