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Pension Age Going Up and Strikes Public Sector
Comments
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Why do you think the "current ponzi scheme" won't last? As long as children keep being born, or even immigrant workers keep coming, there will always be new participants in the "ponzi scheme". It's not like tax and NI are optional.
The argument in the past was that government bonds were ultra-safe AAA credit as a government could always raise future taxes to cover both future spending and servicing of their mountain of debt.
Of course, there comes a point when everyone realises that this can't go on forever and corrections are both rapid and painful.
Governments need to live within their means.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »The argument in the past was that government bonds were ultra-safe AAA credit as a government could always raise future taxes to cover both future spending and servicing of their mountain of debt.
Of course, there comes a point when everyone realises that this can't go on forever and corrections are both rapid and painful.
Governments need to live within their means.
Sorry, what it your point? The UK govt still has an AAA credit rating, and one of the lowest rates on bonds in the world. This despite restoring the pensions earnings link, and even talking about a higher flat rate pension.
The state pension is within the govt's means. And will carry on being so, subject to adjusting the retirement age to take account of increasing life expectancy.0 -
The UK govt still has an AAA credit rating, and one of the lowest rates on bonds in the world.
That we're seen as a safe haven just shows how much other countries have blown it. As to whether the UK can pull it around in time remains to be seen.The state pension is within the govt's means. And will carry on being so, subject to adjusting the retirement age to take account of increasing life expectancy.
Those "adjustments" to retirement age alone are enough for any sensible person to decide that relying solely on state pension is a grim prospect.
Throw in that we're only paying today's pensions etc, by borrowing, and UK state pensions look like a risky asset class to me!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »That we're seen as a safe haven just shows how much other countries have blown it. As to whether the UK can pull it around in time remains to be seen.
Those "adjustments" to retirement age alone are enough for any sensible person to decide that relying solely on state pension is a grim prospect.
Indeed, I wasn't suggesting relying solely on the state pension, but it can form part of your pension planning. There is no reason to assume it won't be there (or will be means tested etc) in 50 years time.Throw in that we're only paying today's pensions etc, by borrowing, and UK state pensions look like a risky asset class to me!
Why? The govt are on course to eliminating the structural deficit in the next few years. The markets clearly have confidence, even if the French don't;)0 -
Sounds like the government have caved in again doesn't it, pathetic, they get away with it every time whilst private sector workers continue to suffer0
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Indeed, I wasn't suggesting relying solely on the state pension, but it can form part of your pension planning. There is no reason to assume it won't be there (or will be means tested etc) in 50 years time.
I've made sure that my plans stand a good chance of working without it. I guess I'm not a trusting person when it comes to government promises.
Why? The govt are on course to eliminating the structural deficit in the next few years. The markets clearly have confidence, even if the French don't;)
I guess we'll see.
I just can't accept structural deficit as being being justifiable unless the money is invested in (for example) infrastructure that actually stands a chance of creating some return via future tax income. Once a country has started down the slippery slope of borrowing to cover day-to-day spending, it's hard to get back up, particularly with the French throwing wet sponges.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Gracchus_Babeuf wrote: »You mean gambling on the stockmarket and lose all your money? Good idea, is it?
Investing != gambling.nearly half your salary to give the same benefit as a final salary scheme?
A 20 year old today on about £24k would need to contribute around 15% to get a pension at 67 of £16kpa. Of course, if they got a big rise later on, then they'd need to up the percentage and not just the absolute amount.
Even if we lower long-term investment performance to 5%, the contribution needed "only" rises to 25%.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Gracchus_Babeuf wrote: »Pensions earnings link? This is a scam, you prat. If salaries were rising above inflation the government would never have gone for this, but the clever basta**s know full well that salary rises are frozen or below inflation for 90% of people. The key is that CPI has replaced RPI so the pension is rising LOWER than it would be under the old system!! :mad: The government could easily double the state pension and it would still be easily affordable, but the cu*ts prefer to give tax breaks to the rich.
You really are incredibly stupid, aren't you? Do you really think earnings being below RPI is a long term trend? Yes the switch to CPI resulted in a lower rise this year than would have been the case under the old system, but nobody doubts that restoring the earnings link, as recommended by the Turner report commissioned by the last govt, will lead to bigger rises over the long term than under the old RPI indexation. Except you it seems.
Now get back to DT with all the other clueless loonies.0 -
:rotfl:Pot, kettle...Gracchus_Babeuf wrote: »What an obnoxious moron you are.0 -
gadgetmind wrote: »I've made sure that my plans stand a good chance of working without it. I guess I'm not a trusting person when it comes to government promises.
Well if you look at govt actions over the last 15 years or so, it's works pensions and private pensions that have been hit hardest, rather than state pensions.
Also it is incredibly popular, any govt that dared interfere with it too much will pay the price at the ballot box. Tony Blair said the biggest mistake of his first term was not over-indexing the state pension when inflation was only about 1% - resulting in "peanuts" headlines in the tabloids. So they introduced the 2.5% minimum increase which applies if inflation is lower.I guess we'll see.
I just can't accept structural deficit as being being justifiable unless the money is invested in (for example) infrastructure that actually stands a chance of creating some return via future tax income. Once a country has started down the slippery slope of borrowing to cover day-to-day spending, it's hard to get back up, particularly with the French throwing wet sponges.
But the structural deficit is going. It's only here while the mess of the last govt and the financial crisis is being cleared up. Through all the cuts, the state pension remains fully intact and the only talk is of increasing it, rather than reducing it.0
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