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Pension Autoenrolment

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    Pension Autoenrolment

    Well, tough times, so I've taken a Permie role and issued myself a P45. A strange one as there seemed to be lots of contracts out there, but none were biting, yet the Permie role I went for a "test interview" offered me the role over the other candidates.

    Anyways, no contractor wants a gap in their CV so I tentatively nibbled their hand off. Even if I'm only here 6-12 months I'm making the most of it and paying a big chunk into the Pension Scheme with salary sacrifice. I became aware that HM Govt is bulldozing every UK worker into automatically enroling on a company pension scheme with minimum amounts of 1%, then 3% then I think 8% by (I think) October 2018.

    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?
    Originally posted by Nigel Farage MEP - 2016-06-24 04:00:00
    "I hope this victory brings down this failed project and leads us to a Europe of sovereign nation states, trading together, being friends together, cooperating together, and let's get rid of the flag, the anthem, Brussels, and all that has gone wrong."

    #2
    Originally posted by rl4engc View Post
    Either way, that's a lot of extra cash that's going to be invested "somewhere" isn't it?
    They'll invest all of it into Cryptocurrencies...

    Comment


      #3
      I had a permie job for a year. I now have an extra pension with a couple of hundred quid in. More hassle than its worth.....

      Comment


        #4
        What is this "Pension" of which you speak?
        Do what thou wilt

        Comment


          #5
          Originally posted by BrilloPad View Post
          I had a permie job for a year. I now have an extra pension with a couple of hundred quid in. More hassle than its worth.....
          Apart from the basic state pension, every other pension has been an uphill battle for me. I am so glad that I decided to put all my effort into buying property.

          An ex-colleague who was a permie had five pensions from former employers all of which had had contributed extra but the schemes had gone bankrup; he had to carry on working after 65.

          Anther chap in his 80s was stacking shelves in Tesco in order to live because his work pension had gone bust; sadly he died at work.

          It happens more times than you realise because when the smaller businesses fail they are not newsworthy.
          "A people that elect corrupt politicians, imposters, thieves and traitors are not victims, but accomplices," George Orwell

          Comment


            #6
            Originally posted by rl4engc View Post
            Well, tough times, so I've taken a Permie role and issued myself a P45. A strange one as there seemed to be lots of contracts out there, but none were biting, yet the Permie role I went for a "test interview" offered me the role over the other candidates.

            Anyways, no contractor wants a gap in their CV so I tentatively nibbled their hand off. Even if I'm only here 6-12 months I'm making the most of it and paying a big chunk into the Pension Scheme with salary sacrifice. I became aware that HM Govt is bulldozing every UK worker into automatically enroling on a company pension scheme with minimum amounts of 1%, then 3% then I think 8% by (I think) October 2018.

            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?
            Sorry this is a contractor forum...
            ______________________
            Don't get mad...get even...

            Comment


              #7
              Originally posted by AtW View Post
              They'll invest all of it into Cryptocurrencies...
              My SIPP is invested in a share of Birmingham car theft mining operations.

              Comment


                #8
                Originally posted by rl4engc View Post
                Well, tough times, so I've taken a Permie role and issued myself a P45. A strange one as there seemed to be lots of contracts out there, but none were biting, yet the Permie role I went for a "test interview" offered me the role over the other candidates.

                Anyways, no contractor wants a gap in their CV so I tentatively nibbled their hand off. Even if I'm only here 6-12 months I'm making the most of it and paying a big chunk into the Pension Scheme with salary sacrifice. I became aware that HM Govt is bulldozing every UK worker into automatically enroling on a company pension scheme with minimum amounts of 1%, then 3% then I think 8% by (I think) October 2018.

                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?

                Comment


                  #9
                  It's no coincidence that pension contributions via way of salary sacrifice is being allowed to continue as a way of mitigating against some personal tax.

                  The upcoming 'massive' infrastructure investment is apparently going to be paid for by all this pension money sloshing about.

                  I presume the pension itself will be protected by government bond or some such mechanism for them to pay it back eventually, and in time for people to be able to utilise it.
                  Maybe tomorrow, I'll want to settle down. Until tomorrow, I'll just keep moving on.

                  Comment


                    #10
                    Originally posted by Paddy View Post
                    Apart from the basic state pension, every other pension has been an uphill battle for me. I am so glad that I decided to put all my effort into buying property.

                    An ex-colleague who was a permie had five pensions from former employers all of which had had contributed extra but the schemes had gone bankrup; he had to carry on working after 65.

                    Anther chap in his 80s was stacking shelves in Tesco in order to live because his work pension had gone bust; sadly he died at work.

                    It happens more times than you realise because when the smaller businesses fail they are not newsworthy.
                    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.
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment

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