Student Loans 2012

2sides2everystory

Lokolo wrote: »

Surely if student loan repayments take out from income cause people not to put into a pension, this would apply to previous students as well as 2012+ students?

Yes it did/does apply to pre-2012 entrants who in my experience would rather have the money in their pocket at the end of the month than have it deducted into a pension arrangement unless they are earning more money than is simply needed to survive of course.

I also fail to see how the amounts would stop people paying into a pension.

I think that is because you may not be representative of the majority of graduates, Lokolo, as indicated by your next comment:

Although I am on a good graduate salary, even with my student loan repayment I am putting in 8% into pension, it's not hindering in anyway or form.

Lokolo

2sides2everystory wrote: »

Yes it did/does apply to pre-2012 entrants who in my experience would rather have the money in their pocket at the end of the month than have it deducted into a pension arrangement unless they are earning more money than is simply needed to survive of course.

I think that's more of a British thing than anything. People would rather spend money on luxury items than pay into a pension.

I think that is because you may not be representative of the majority of graduates, Lokolo, as indicated by your next comment:

But my student loan repayments as a % of my income is a lot higher than of my peers because of the repayment threshold so surely the more I earn the less I am going to be able to pay into a pension because of the SL repayments? <- As a % of income.

However, if we talk about the actual amounts, they are not significant. Let's take £20k. They pay £37 a month in student loan repayments (for pre 2012), now I know you are older than me, can you honestly say that £37 a month out of that salary would stop someone being able to afford to pay into a pension with a take home of £1290 as opposed to £1330?

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Having just read your previous post, I guess my question is still valid - would that £37 a month less in your pay packet really stop your from paying into a pension?

And in case you didn't know, employers are being made to contribute towards employees pensions in the next few coming years, which would actually balance out the less money in your pay packet.

I also think it's not the fact people can't afford it, I think they don't think they can afford it, people would rather spend money on a night out or an Xbox than put money away for retirement or save.

melancholly

Lokolo wrote: »

I also think it's not the fact people can't afford it, I think they don't think they can afford it, people would rather spend money on a night out or an Xbox than put money away for retirement or save.

which is, quite frankly, daft..... although sadly, probably true! by the time current students retire, i wonder if the state pension will be worth anything so private pensions will be even more important than they are now (not that the state pension is a fun existence at the moment).

Taiko

Makes me glad I have my LGPS as well as a private one, both contributing around £200 a month towards.

Come retirement, I'll be raking it in still, while the rest of my generation struggles.

Lokolo

Taiko wrote: »

Makes me glad I have my LGPS as well as a private one, both contributing around £200 a month towards.

Come retirement, I'll be raking it in still, while most of the the rest of my generation struggle.

I don't plan on struggling

Taiko

Lokolo wrote: »

I don't plan on struggling

But you will. Even if I have to make that happen myself.

melancholly

Taiko wrote: »

But you will. Even if I have to make that happen myself.

remind me never to cross you lol

2sides2everystory

Taiko wrote: »

Makes me glad I have my LGPS as well as a private one, both contributing around £200 a month towards.

Come retirement, I'll be raking it in still, while the rest of my generation struggles.

I wouldn't bet on it. Just been speaking to someone with pensionist family in Greece. They are making emergency contingency plans to get money to them in Greece when the state pension and their private pension dries up.

Are we in so hugely different woods in the UK?

Taiko

I'd happily bet on it. But that's because I'm prepared well in advance.

setmefree2

Economists at Barclays Capital have just released a revised inflation forecast for the UK in direct response to the Scottish Power announcement of price increases in Gas and electricity. This has CPI inflation peaking at 5.2% in October, with RPI going as high as 6.4%.

RPI at 6.4% plus 3% = 9.4%

So the student loans 2012 could be charging 9.4% interest from the get go.