Implications of 'yes' vote on Scottish Widows annuity?

jem16

bigadaj wrote: »

Isn't that 'were'?

No as far as I know we still are.

we're = we are.

rpc

Annie1960 wrote: »

But they might start paying me in a different currency (or would this not happen?) They were not able to answer this question themselves when my broker asked them.

If they contract to pay you £X per month for the rest of your life, then they have to pay you £X per month for the rest of your life.

They can't change currencies to suit them - GBP one month, EUR the next and maybe USD the month after?

This is why there is concern that so much of our financial sector may move after a Yes vote. With no currency union, and also if there is no common regulation, it doesn't make sense to base your business in one country while your customers are in another.

Annie1960

rpc wrote: »

If they contract to pay you £X per month for the rest of your life, then they have to pay you £X per month for the rest of your life.

They can't change currencies to suit them - GBP one month, EUR the next and maybe USD the month after?

Is this your guess, or is there an evidence base for this? If the latter, where is this written down?

bigadaj

jem16 wrote: »

No as far as I know we still are.

we're = we are.

No, I meant past tense, fantastic history but after the horrendous dealings at rbs as well as the disaster that was Bos I think the old scottish qualities of prudence and long termism have been sullied.

Nick_C

Digressing slightly, I live in England but have a savings account with the Scottish Building Society that is about to mature. I'm repatriating my money to an organisation that I know will continue to be based in RUK and use the pound sterling. I'm probably being over cautious, but why take the risk.

I'm sure lots of "Scottish" financial firms will lose business as a result of the uncertainty caused by the referendum - a short term loss if there is "No" vote, and things will get much worse if the vote is "Yes". This will doubtless also affect firms that should probably not be affected, such as RBS, owned (for now!) by the UK Government.

jem16

bigadaj wrote: »

No, I meant past tense, fantastic history but after the horrendous dealings at rbs as well as the disaster that was Bos I think the old scottish qualities of prudence and long termism have been sullied.

I agree but we're would still be correct as it can mean we are or we were.

Still not sure how I could use were instead of we're?

Annie1960

rpc wrote: »

If they contract to pay you £X per month for the rest of your life, then they have to pay you £X per month for the rest of your life.

They can't change currencies to suit them - GBP one month, EUR the next and maybe USD the month after?

This is why there is concern that so much of our financial sector may move after a Yes vote. With no currency union, and also if there is no common regulation, it doesn't make sense to base your business in one country while your customers are in another.

Also, what would happen if tax rates in Scotland increased in relation to England? Presumably the tax would be deducted in Scotland at the higher rate?

The idea of Scottish Widows is looking less attractive the more I think about it.

Thrugelmir

Annie1960 wrote: »

Also, what would happen if tax rates in Scotland increased in relation to England? Presumably the tax would be deducted in Scotland at the higher rate?

The idea of Scottish Widows is looking less attractive the more I think about it.

There's a range of issues which would arise. Irrespective of what an individual business does. Customers are likely vote with their feet.

There's also an impact for Scots too they hold savings with UK institutions such as investments in pensions. Adverse currency movement would reduce their income and at the very least incur them with charges to convert from GBP into local currency.

ferox666

As a Scottish person I sincerely hope my fellow Scots vote NO to independence. It would be a disaster, particularly regarding financial matters.

The original post in this thread is just another small example of the confusion, worry and uncertainity that the threat of independence is creating. The sooner the referendum is over the better.

Scotland should remain part of the UK in my opinion, we're much better off as part of a partnership.

PuzzledDave

Annie1960 wrote: »

Also, what would happen if tax rates in Scotland increased in relation to England? Presumably the tax would be deducted in Scotland at the higher rate?

The idea of Scottish Widows is looking less attractive the more I think about it.

I have two pensions in Scottish institutions, they are the overwhelming bulk of my pots, change in tax rates is one issue I'm thinking of - what about minimum retirement age in accessing your private pension ? I can see my dreams of retiring early vanishing in smoke. Or perhaps terms of using drawdown and such ?

Worse still is I suspect I may not hear about such changes until it's far too late. It's not like changes to Ireland, France & the Netherlands pension laws get high visibility in the news - will changes to Scotlands pension laws really get reported in the rUK in 20 years time ? I think not...

Keeping my retirement fund in another country seems insane, I just can't decide at the moment if to stay put with the great firms I am invested with or jump now and not get stuck in some massive queue in case Scotland goes it's own way.