Plan to change private pension inflation link

Exocet

Sir_Humphrey wrote: »

If we can afford to bail out the banks, pay chief executives ludicrous amounts, have the lowest level of income tax since WW2 and allow gaping tax loopholes we can afford to give people a decent standard of living.

It might mean changing some of the things I listed however.

Oh sorry, I forgot, it's the political argument again. Well yes we could pay more tax, and do that other stuff instead. I think whichever path you go down we are likely to be worse off overall. As I am neither a banker or a claimant it seems every one wants me to pay for them.

vivatifosi

Sir_Humphrey wrote: »

It is the indexation for payments. So it will reduce payments on all accrued pension provision.

But they introduced it!

carolt

I'd be happy with that provided the stuff provided was for the benefit of all of and not just a small coterie. ie the Scandinavian system.

Sir_Humphrey

vivatifosi wrote: »

But they introduced it!

Perhaps I am being slow. This will reduce payouts from existing occupational pensions, so this would not push them into deficit.

What it will do is bilk people who decided to pay into them.

downshifter98

Just wondering how this will affect deferred pensions that are currently 'uprated' yearly between time of leaving and pension date by RPI - will this 'uprating' now be retrospectively based on past cpi or just in future years or only when the pension is 'in payment'.

Not happy about this but very aware that desperate times call for desperate measures etc..ho hum..

Sir_Humphrey

downshifter98 wrote: »

Just wondering how this will affect deferred pensions that are currently 'uprated' yearly between time of leaving and pension date by RPI - will this 'uprating' now be retrospectively based on past cpi or just in future years or only when the pension is 'in payment'.

Not happy about this but very aware that desperate times call for desperate measures etc..ho hum..

Pretty sure this would apply to deferred pensions.

Why not just put up income tax if you are going to lose money anyway?

purch

This govt is bonkers, trust me!

I'd trust you more, if you'd said ALL instead of This !!!

Liquorice_Twirls

This is just another nail in the coffin for those workers trying to save for their old age. I think this government just wants you to keep working till you drop and so you won't need a pension anyway. Surely saving for old age should be encouraged.

treliac

Liquorice_Twirls wrote: »

This is just another nail in the coffin for those workers trying to save for their old age. I think this government just wants you to keep working till you drop and so you won't need a pension anyway. Surely saving for old age should be encouraged.

Well maybe, but where are the jobs going to be found? Perhaps euthanasia is more logical.

artha

Liquorice_Twirls wrote: »

This is just another nail in the coffin for those workers trying to save for their old age. I think this government just wants you to keep working till you drop and so you won't need a pension anyway. Surely saving for old age should be encouraged.

I can't remember who was being interviewed but, on the bit of the evening news I caught,the question was asked "so how should people deal with this change?" The answer was that they need to save more and make more provision for their retirement.

So how do those who have already retired on corporate schemes do this?