MSE News: Minister admits millions 'don't have a clue' about pensions

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"The pensions landscape will undergo major change shortly so we put your concerns to pensions minister Steve Webb ..."

Read the full story:
Minister admits millions 'don't have a clue' about pensions

BoxerfanUK

In part of the text in the article, Steve Webb said;

"At 66 a woman can still expect to live for another 20 years. For some women it is a change but partly because the retirement age did not change for a century.

"We think there is a woman soon to be 120 who retired at 60 and will spend half her life getting the state pension.

It's a pity the person putting the questions to Steve Webb in that article failed to ask him what difference his governments despicable policy on downgrading pension increases from RPI to the lower CPI will have on the pensions of persons in the above two examples, as we are all now living much longer!!!!!

The 'millions who don't have a clue about pensions' obviously INCLUDES Mr Webb

Ripoff_2

Is it any wonder people don't put money away for pensions, they can see how people have been cheated by Governments and companies that raid their pensions, Gordon Brown did it, now George Osborne is doing it with changing the indexation from RPI to the lesser CPI, and he is doing it for pensions in payment, not just new pensioners, this breaks one of the fundamental trusts of pensions, that they are not retrospectively reduced but that is exactly what George Osborne and Steve Webb are doing.

How can people ever trust any pension agreements, or for that matter Governments that are allowed to change the inflation rate at will it would seem, what confidence can people have that the pound they put into their pension will be the pound plus the deal they thought they had when it comes to their retirement.

Pensions, without TRUST, is not a pension any one wants. I can't blame people for not entering into pensions, why would they when they can see them being stolen from them.

I did the right thing, paid for my RPI indexed linked PRIVATE pension all my working life to then have the RPI indexing stolen from me by this Government. I believed I had a contract with my employer and I believed what I was being told by my employer and trustees, to find now that the Government can change my indexing from RPI to the lesser CPI on some dodgy assertion that CPI is a better measure of pension inflation, when even the professionals (RSS) say that it is not, is an absolute disgrace.

So why ever would anyone put money into pensions, ever trust what they are being told and ever trust Government again when it comes to pensions, no wonder people don't want to know about pensions, how ever will they trust NEST?

The change from RPI to CPI is an absolute betrayal and theft by this Government and has done the most damage to the pension ethos than any other change. It's broken the fundamental TRUST that should exist for people to make that long term commitment.

bendix

Not only do people not know about pensions, but they almost seem to wear their ignorance like a badge of honour, as if it's - heeeee heeee - something to chuckle about and be proud of.

I've lost count of the number of threads on the pensions section which begin "Im a total dunce about this, but . . . "

Faux modesty

dunstonh

Not only do people not know about pensions, but they almost seem to wear their ignorance like a badge of honour, as if it's - heeeee heeee - something to chuckle about and be proud of.

Thats because the UK society is positioned as a nanny state where everything has to be dumbed down rather than standards raised. Being a success or being educated are mocked by many people.

kidmugsy

"George Osborne is doing it with changing the indexation from RPI to the lesser CPI": the indexation of what? You do realise that the indexation of the basic State Pension isn't being changed to the CPI, don't you?

It's being changed so that each year (after the forthcoming rise) it will be the larger of (i) % rise in CPI, (ii) 2.5%, (iii) % rise in the earnings index.

Loughton_Monkey

bendix wrote: »

Not only do people not know about pensions, but they almost seem to wear their ignorance like a badge of honour, as if it's - heeeee heeee - something to chuckle about and be proud of.

I've lost count of the number of threads on the pensions section which begin "Im a total dunce about this, but . . . "

Faux modesty

Well looks like I've managed to save £1,000:T:rotfl::beer:
I no nuthing about saving:j:j:j:j so Im looking for you people to tell me where to invest it:rotfl::T. I'm totally and utterly confused :eek::T about this savings lark. I want BEST:beer: interest for my investment. Should I get a Stakeholder or put it in a SIPP ISA? Totally confused!!!!!:j:j!!!

Blobby8_2

Loughton_Monkey wrote: »

Well looks like I've managed to save £1,000:T:rotfl::beer:
I no nuthing about saving:j:j:j:j so Im looking for you people to tell me where to invest it:rotfl::T. I'm totally and utterly confused :eek::T about this savings lark. I want BEST:beer: interest for my investment. Should I get a Stakeholder or put it in a SIPP ISA? Totally confused!!!!!:j:j!!!

Swansea 5/6
Cardiff 11/13
Norwich 8/13

JuicyJesus

Loughton_Monkey wrote: »

Well looks like I've managed to save £1,000:T:rotfl::beer:
I no nuthing about saving:j:j:j:j so Im looking for you people to tell me where to invest it:rotfl::T. I'm totally and utterly confused :eek::T about this savings lark. I want BEST:beer: interest for my investment. Should I get a Stakeholder or put it in a SIPP ISA? Totally confused!!!!!:j:j!!!

Your post brings to mind a thread on the Bank Accounts board from a very confused individual who posted wanting an "ISA current account". always made me think of some young-ish kid with a chav accent and a track suit who'd read MSE but didn't understand any of it going into a branch and wanting to know about their inflation-busting credit card overdrafts on their fixed-rate personal loan bonds.

Ripoff_2

kidmugsy wrote: »

"George Osborne is doing it with changing the indexation from RPI to the lesser CPI": the indexation of what? You do realise that the indexation of the basic State Pension isn't being changed to the CPI, don't you?

It's being changed so that each year (after the forthcoming rise) it will be the larger of (i) % rise in CPI, (ii) 2.5%, (iii) % rise in the earnings index.

Yes I am well aware of the State pension change but this change also affects public and many private pensioners.

The pension indexing of Public Sector and Many Private Sector pensions such as BT,BA is being changed from RPI to CPI, by George Osborne, in fact it has changed from this year. The lesser CPI is being used for public and many private sector pension uprating, from the past 38 years usage of RPI.

The state pension is slightly different in that it was increased by RPI and this year this has remained the same but from next year it will increase by CPI if that is greater than 2.5% or greater than the % rise in the earnings index.

So one has to hope that the earnings index is higher than CPI and 2.5% otherwise where RPI is even higher than both earnings and CPI, the pension will increaese by less than the true inflation of RPI.

The triple lock is very much a red herring in that it only really works if the % earnings are higher than RPI, because RPI is what pensioners would have had before the changes. Linking to earnings is fine as long as earnings keep up with RPI inflation but if they don't then the pensioner gets either CPI or 2.5% which ever is the higher.

What this change should have been for the state pension, is 2.5% or % of earning index or RPI% which ever is the higher. Then the triple lock would have been as good as the Government tries to make out it is.

BoxerfanUK

ripoff wrote: »

what this change should have been for the state pension, is 2.5% or % of earning index or rpi% which ever is the higher. Then the triple lock would have been as good as the government tries to make out it is.

exactly, well said