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'The Government is on very thin ice here if it's going down the affordability route'
StevieJ
Posts: 20,174 Forumite
So says the an unlikely source, SKY's business presenter.
http://uk.finance.yahoo.com/news/Affordability-Row-Over-Public-skynews-2767242404.html?x=0And a chart in the Government-commissioned Hutton report shows public service pension payouts will actually fall as a percentage of GDP over the coming decades.
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
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Anything is affordable, it's just a matter of what else you do not spend on, or how much you raise taxes.0
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As I said before, the recession has provided a great opportunity for the Torylition to line up all their ideological ducks in a row.
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
The Sky report is nonsense!
Check page 128 of the latest OBR economic and fiscal outlook report. It shows gross expenditure for central government unfunded pension schemes rising by more than 29% between 2010-11 and 2015-16 from £26.1bn to £33.7bn.
I assume some dip at Sky has compared the entire public sector pensions cost of 2008-9 with that of the central government cost (ex-LGPS, police and fire) for 2015-16!"The state is the great fiction by which everybody seeks to live at the expense of everybody else." -- Frederic Bastiat, 1848.0 -
Pension costs are a fixed cost with maximums.
GDP is a floating figure.0 -
I don't think they are going far enough. All public sectors should be stripped of any further DB plans. Join the real world.
Yes, when they joined, one of the perks was the pension. Fair enough. Nobody is saying change anything retrospectively. Make it a DC scheme going forward. The costs are then there for all to see and for the employees to contribute to at a sensible rate. After it is changed to a DC scheme, nobody will force you to stay in the public sector, come join the private sector if you like.
Civil servants and teachers paying 3 or 6% for a final salary or career average are moaning because they have to pay another 3%. Jokers. Absolute jokers. I pay almost 20% of my salary in to a pension and even then I won't get as much (in % terms of final salry) as them.0 -
Procrastinator333 wrote: »I pay almost 20% of my salary in to a pension and even then I won't get as much (in % terms of final salry) as them.
Sky news reported today that to get a £24,000 a year pension, the average worker would have to save a pension pot of £500,000. (all in today's money, plus inflation)
BTL looking more attractive by the day.....
Three flats and it's done, with other people buying all or most of your pension for you. Actually, given the inevitable real terms increase in house prices over the next couple of decades, 2 flats would be more than enough.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Sky news reported today that to get a £24,000 a year pension, the average worker would have to save a pension pot of £500,000. (all in today's money, plus inflation)
BTL looking more attractive by the day.....
Three flats and it's done, with other people buying all or most of your pension for you. Actually, given the inevitable real terms increase in house prices over the next couple of decades, 2 flats would be more than enough.
Isn't that a very high risk strategy though? Even as a public sector worker I don't have the confidence to put all my eggs in one basket. I also have a private pension and other investments to fund retirement. I have looked at BTLs in the past, but they seemed more hassle and potentially less return than other investments. Although I haven't ruled it out completely as additional investment.0 -
Isn't that a very high risk strategy though? Even as a public sector worker I don't have the confidence to put all my eggs in one basket. I also have a private pension and other investments to fund retirement.
I would view BTL as an addition to other investments, not a replacement.
Don't forget with BTL your tenant pays for all or almost all of the mortgage in the early years, and as rents rise with inflation, it turns significantly cashflow positive in the later years, even after voids, repairs, etc.
Meaning you still have plenty of ability to contribute to pensions or other investments as you please and stay diversified.I have looked at BTLs in the past, but they seemed more hassle and potentially less return than other investments. Although I haven't ruled it out completely as additional investment.
No matter how you cut it, with BTL someone else buys you an asset.
It's impossible for that to be "less return than other investments". Show me any other investment where someone else pays for it on your behalf.... No matter what the percentage returns may be.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Lot of convincing going on there hamish.
You bought one yet?0 -
Graham_Devon wrote: »Lot of convincing going on there hamish.
You bought one yet?
Shopping around for another one or two at the moment.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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