Will Releasing Pensions lead to a lot more BTL

Running_Horse

Anyone approaching retirement should have all their hard earned pensions, savings and property confiscated by the state and given to those leaving education and beginning work who haven't earned it yet...on condition that when they are approaching retirement they should have their hard earned pensions, savings and property confiscated by the state and given to those leaving education and beginning work who haven't earned it yet.

http://m.youtube.com/watch?v=Bf1g00qbv10

grizzly1911

I_have_spoken wrote: »

Releasing pensions as cash will be needed to pay-off the capital on interest only mortgages or endowments which haven't generated enough capital growth.

Far from funding BTL, this is mostly to address the timebonb of mortgages/remortgages taken out since the first price boom under Lawson in 1988 which are now coming up for settlement.

Gideon must have seen the retail mortgage debt on the RBS books and realised the banks would collapse again unless he found a way of moving cash out of pensions. 25 years of holidays, 4x4s, makeovers etc by releasing equity have to be paid for!

On the news yesterday a commentator pointed out that 1.5 million people above pension age still have mortgages IIRC.

Appreciate that for some that it will be part of a well planned investment strategy where they have suitable income/repayment vehicle. Some will be very small amounts, a few will be sheer bad luck. Wonder how many have simply been due to p*ss poor planning, profligacy and for substantial (relative) amounts?

ukcarper

grizzly1911 wrote: »

On the news yesterday a commentator pointed out that 1.5 million people above pension age still have mortgages IIRC.

Appreciate that for some that it will be part of a well planned investment strategy where they have suitable income/repayment vehicle. Some will be very small amounts, a few will be sheer bad luck. Wonder how many have simply been due to p*ss poor planning, profligacy and for substantial (relative) amounts?

Is that figure correct though according to CML there are 11.2 million mortgages in total.

chewmylegoff

bigheadxx wrote: »

So you would get £80k Max if you had no other income. Spreading it over two years with just the basic pension as income would almost entirely negate the 40% tax rate.

Yes, true. And then you still wouldn't have enough money to buy a house.

CLAPTON

bigheadxx wrote: »

Most wealth is in the hands of the over fifties, that's a fact. The reignition of a 'class war' is a side show, both Westminster party's have the same agenda.

The post WW2 period was when the boomers were born so the hardship was borne by their parents.

Immigration serves two purposes for the British establishment. Firstly as people settle here, they consume. My Bulgarian friend has just bought a house, spent thousands on it. All things that fuel consumption and economic growth. I known dozens like him and there are thousands across the country. If immigrants were not here this consumption would not exist and growth would be through the floor. Just check out German prospects after 2015. This consumption replaces in part the consumption of the boomers, plugging the gap in growth and tax revenue.

The other purpose that immigration serves is the bolstering of our position on the world scene. A population of 80 million is not going to be ignored by the EU especially when it will be the biggest market in Europe and the biggest economy by 2050.

Certainly young people are put at a disadvantage job wise as they are competing against highly educated immigrants who will work for less and be more keen to 'get on'.

See another stealth tax con just for the young: https://forums.moneysavingexpert.com/discussion/4928852

I am touched by your concern that native born UK people are incapable of consumption and need foreign assistance.

Love the bit about high population leads to riches and power cf Bangladesh maybe?

Have you ever considered reading an economics book ? However you are on the right track by discovering that a new born baby has accumulated less than a 50 year old who has worked for 30 years.

chucknorris

CLAPTON wrote: »

I am touched by your concern that native born UK people are incapable of consumption and need foreign assistance.

Love the bit about high population leads to riches and power cf Bangladesh maybe?

Have you ever considered reading an economics book ? However you are on the right track by discovering that a new born baby has accumulated less than a 50 year old who has worked for 30 years.

So that's why babies cry! They are training for internet whinging later on in life.

bigheadxx

CLAPTON wrote: »

I am touched by your concern that native born UK people are incapable of consumption and need foreign assistance.

Love the bit about high population leads to riches and power cf Bangladesh maybe?

Have you ever considered reading an economics book ? However you are on the right track by discovering that a new born baby has accumulated less than a 50 year old who has worked for 30 years.

No but I am considering writing one. If you were to present a scenario where immigration hadn't happened this last ten years, what do you think would happen to consumer spending and economic growth? Immigrants are propping up consumption now, filling the void as bbs retire and consume less.

I didn't mention babies, I am talking about those in their twenties and thirties who have little wealth and 35 year mortgages.

High population leads to higher GDP certainly although not necessarily GDP per head. Immigration and a new baby boom will mean that UK population, uniquely in Europe will have more young people which will help pay the pensions and care costs of people retiring over the next 20 years.

CLAPTON

bigheadxx wrote: »

No but I am considering writing one. If you were to present a scenario where immigration hadn't happened this last ten years, what do you think would happen to consumer spending and economic growth? Immigrants are propping up consumption now, filling the void as bbs retire and consume less.

I didn't mention babies, I am talking about those in their twenties and thirties who have little wealth and 35 year mortgages.

High population leads to higher GDP certainly although not necessarily GDP per head. Immigration and a new baby boom will mean that UK population, uniquely in Europe will have more young people which will help pay the pensions and care costs of people retiring over the next 20 years.

High population is not a recipe for high GDP per head.

There are numerous countries all round the world that prove that high population isn't a recipe for per capita income and welfare.

There is no economic analysis that has shown that consumption per immigrant is higher than consumption per native.
If it were so would you be happy that immigrants were getting more out of the UK that native born (per capita of course)? i.e. immigrants having more consumption of housing, medical services, cloths, utilities etc than native born. Why ever is that a good thing?

Obviously you welcome the growth in population, whilst I do not want a great increase in our population.
Essentially a ponzi scheme where the only solution to longer life is exponentially increasing population.

Many of our daily requirements have to be imported; we are not self sufficient in food, gas, fuel etc and an increasing population will
require ever higher levels of essential imports.


I'm also amused by your concern that boomers will consume LESS; most people are concerned by their over consumption and greed rather than their being willing to add to the UK savings pool.

I'm still amased that you expect a 20-30 year old to have accumulated the same wealth as a 50-60 year old.

Thrugelmir

I_have_spoken wrote: »

Releasing pensions as cash will be needed to pay-off the capital on interest only mortgages or endowments which haven't generated enough capital growth.

Far from funding BTL, this is mostly to address the timebonb of mortgages/remortgages taken out since the first price boom under Lawson in 1988 which are now coming up for settlement.

Gideon must have seen the retail mortgage debt on the RBS books and realised the banks would collapse again unless he found a way of moving cash out of pensions. 25 years of holidays, 4x4s, makeovers etc by releasing equity have to be paid for!

Could be part of the reasoning behind the proposal.

Average personal pension pot in 2013 at maturity was £17,700. So may only help relatively few.

Thrugelmir

ukcarper wrote: »

Is that figure correct though according to CML there are 11.2 million mortgages in total.

Office for national statistics estimates that 350,000 over the age of 65 still have a mortgage.

Over the next decade 40,000 a year will hit retirement with an outstanding mortgage.

Current balance owing is around £30k. Which is forecast to increase as the trend of rising house prices impacted the amount people borrowed.