Osborne's latest policy

MARTYM8`

Osborne is certainly desperate to buy those pensioner votes - much of which is currently going UKIP.

But that is Osborne all over - short termism. By the time it goes wrong - he will be long gone and safely employed by Goldman Sachs or JPM.

kidmugsy

DaveMcG wrote: »

But that would be an extremely niche market of those have taken an annuity, are not yet at state pension age and do not have any other savings to fund the deferment.

No: you can "defer" - meaning 'suspend' - after you've started the pension

kidmugsy

N1AK wrote: »

I was expecting them to announce that the government would buy your annuity off you at some inflated value...

If that policy had been adopted some years ago it would perhaps have done much more than the contemptible "QE" to stimulate demand.

agarnett

Pincher wrote: »

Very soon, they will package the Annuities up into Longevity Bonds, which seem to keep paying out, so the people buy and sell them like any other bond.

Is that what this lot specialise in ?

DaveMcG

kidmugsy wrote: »

"Correct value": what on earth are you talking about?

It really isn't a difficult concept. Those offering to buy the income stream won't be guessing about its value. If the income stream is worth £50k, they will be offering less than that.

So the annuitant will get say £40k, after tax about £30k.

DaveMcG

kidmugsy wrote: »

No: you can "defer" - meaning 'suspend' - after you've started the pension

We've already covered that, do please keep up.

rpc

DaveMcG wrote: »

It really isn't a difficult concept. Those offering to buy the income stream won't be guessing about its value. If the income stream is worth £50k, they will be offering less than that.

How can you know the value unless you know the date of death? With enough income streams, you might expect them to average out based on projected life expectancy, but it is still (informed) guessing.

DaveMcG

rpc wrote: »

How can you know the value unless you know the date of death? With enough income streams, you might expect them to average out based on projected life expectancy, but it is still (informed) guessing.

If some one offers you a bet, where they pay you 20 times your stake, if you can guess the rank and suit of a card, picked at random, from a standard deck of cards, you will both be guessing what the card might be, but the your equity in the bet can be precisely valued at 20/52 of every pound staked.

Just because something is uncertain it doesn't mean it can't be valued.

kidmugsy

DaveMcG wrote: »

We've already covered that, do please keep up.

That's a rather crass way to acknowledge your error, particularly from someone who must get a lot of practice at that.

DaveMcG

kidmugsy wrote: »

That's a rather crass way to acknowledge your error, particularly from someone who must get a lot of practice at that.

It's a niche market - it wasn't an error. And you seem to have a lot of practice trolling.