BoE cuts rates to 3.0%!!!

IveSeenTheLight

Realy wrote: »

But how do you get a final salery if you don't work for them,?

When she left, her pension would have been frozen with a yearly increment depending on interest / inflation etc.

i.e. is she worked for 20 years she may have had a formula like

20 / 65 x final salary = yearly pension allowance (increased each year by set interest rate)

It's the same for any company pension. when you leave the company, you can freeze the pension and collect when you actually retire

Realy

IveSeenTheLight wrote: »

When she left, her pension would have been frozen with a yearly increment depending on interest / inflation etc.

i.e. is she worked for 20 years she may have had a formula like

20 / 65 x final salary = yearly pension allowance (increased each year by set interest rate)

It's the same for any company pension. when you leave the company, you can freeze the pension and collect when you actually retire

But does that not lower the pot if you are not contributing? or the company?

IveSeenTheLight

Realy wrote: »

But does that not lower the pot if you are not contributing? or the company?

Not really, they invest the pot but have to cover for their liabilities.

I have a frozen final salary pension.
But now i also have a defined contributions pension.

i guess you dont really need to understand as the number of employers providing final salary schemes are far reducing.

If you do join a company that gives a final salary, join it immediately and you'll understand better then

Just accpet that what MissMoneyPenny says can be true, she can have a final salary pension to mature from an ex employer.

MissMoneypenny

Realy wrote: »

Quiet obvious i think,

Not obvious to me, that's why I am asking where the inconsistencies are.

Realy wrote: »

I said if i was you I would take up your pension ASAP! (I think that is helpfull)

Yes but you also said this

Realy wrote: »

Tell you the truth I am not sure. I have not been very blessed with pensions in the companies I worked for.:(

No disrespect to you intended, but I think i need to take advice from someone who does know about pensions and tax implications. I don't know much about them.

Your mortgage doesn't upset me, but you did seem to be a little upset about my final salary pension. Are you stil going to move your mortgage? The tracker rates seem to have been pulled.

Realy wrote: »

But you just want to make out I won't get the rate cut .
But they have said from your own findings they are comited to do so and are the strongest UK bank?

I think you should just be aware that many have conditions written in the small print. Have you looked at the conditions in your own mortgage papers?

dopester

IveSeenTheLight wrote: »

According to this link, the UK average is 5.02 for Q3 2008.
Of course with October now down, it is pheasable to be around 4.92

By my projections, it is feasible earnings will drop significantly over the next few years, with higher unemployment as well. We're already seeing it begin around the world.

IveSeenTheLight

dopester wrote: »

By my projections, it is feasible earnings will drop significantly over the next few years, with higher unemployment as well. We're already seeing it begin around the world.

Maybe they will.
Maybe that will mean that the affordability figure will go up again.

But will wages lower by more in percentage than house prices? If so, people will never be able to afford to buy

What about hyper inflation people talk about? What effects will that have on the affordability figure and of course wages.

I dont have a crystal ball, so I dont know.
I'll guess though that the UK average affordability figure advised from HBOS will continue to go down to under the 4.0 mark

WTF?_2

dopester wrote: »

By my projections, it is feasible earnings will drop significantly over the next few years, with higher unemployment as well. We're already seeing it begin around the world.

The inevitable consequences of globalisation.

Mind you, people who were happy enough with it when it was delivering them £5 jeans and huge flat screen tellies for a few hundred quid are less than happy with the sting in the tail.

Get ready for the Western public backlash against globalisation. It'll be interesting to see how the nations which made our cheap goods and now hold lots of our currency react when we try to give them the sh1tty end of the stick though.

dopester

IveSeenTheLight wrote: »

What about hyper inflation people talk about?

The threat of hyperinflation would be very real to those who hold trillions in gilts, fearful of seeing it devalue their investment. The market would adjust by demanding higher rates of return, or begin a sell off putting the Government in an even worse position. Developed economies that have significant financial assets and have a lot more to lose with hyperinflation.

That is why hyperinflation is rare in developed economies... but not impossible, especially if you're overly reliant on foreign credit to finance budgets (as the Weimar Republic was and had fewer financial assets to protect after the original deflationary course of action took them to breaking point).

Hyperinflation solutions are more common in undeveloped economies with no major bond market as the majority of assets are usually tangible assets like land and mineral deposits, buildings, equipment and livestock that can't be totally ruined by hyperinflation. There your plot of land and house still has value during and after hyperinflation.

Much depends on how delusional and unstable the political environment becomes, but I could understand some people actively hoping for hyperinflation, wiping out the value of bank deposits, bonds, mortgages, and insurance claims because money itself has become near worthless, but keeping your bricks and mortar worth something.

poppy10_2

Really2

IveSeenTheLight wrote: »

Not really, they invest the pot but have to cover for their liabilities.

I have a frozen final salary pension.
But now i also have a defined contributions pension.

i guess you dont really need to understand as the number of employers providing final salary schemes are far reducing.

If you do join a company that gives a final salary, join it immediately and you'll understand better then

Just accpet that what MissMoneyPenny says can be true, she can have a final salary pension to mature from an ex employer.

No I accept it is true and it is great for her. As I said I did not know!

Is it great for the pension deficit and our children and their children?
Probably not as they will be paying for it.:rolleyes:

She is annoyed with me from yesterday I said rates should go down to retain jobs.
She wanted them to go up! And then asked if I would like no rates and no job?
To which I answered better than high rates and no job! (I have savings and salary insurance so obviously lower rates would help my circumstances and also make it less likely to lose my job in the first place):rolleyes:

But obviously yesterday she did want to make herself feel better by saying they wont pass the rate on to my BOE tracker and that I will be paying for her pension (please add children and grand children to that list):rolleyes:

Missmoney penny if you think my lender will fall back on their obligation to give me the BOE cut I suggest you also read the small print of your pension I am sure in certain conditions it could pay you nothing.

If you look at any contract there are get out clauses for some one who as held good positions in companies you more than most should know that!

My Mrs works for local goverment final salary pension = council tax time bomb.:eek:
I do find it fairly worying that someone could be at a company for a couple of years and still be entieled to a final salary pension! who is paying for it.:eek: