MSE News: Government to examine access to financial advice

bexster1975

I'm not sure what the stats are on benefit claimants vs low paid workers and use of payday lenders and credit. In my experience it is people working trying to make ends meet that frequently fall pray to these money zappers.

Bexster

Archi_Bald

bexster1975 wrote: »

If people use money wisely, HM Tresury get less tax revenue.

I am afraid you are totally wrong. There is a staggering £160bn in UK savings accounts that pay next to no interest, and thefore next to no tax either.

If people were more financially aware, and more numerate as msallen rightly point outs, they would be moving their money to better paying accounts. These exist, despite the generally low rate of interest. Result number 1 would be that people get paid more interest, and result number 2 would be that more money flows into the tax coffers, which in turn benefit the state at large. A win-win for savers and tax coffers.

This is all totally simple maths, and holds true whatever your political persuasion.

bexster1975

Oh dear Archi. I'm not discussing the section of society you seem so hung up on - people with pots of money languishing in savings accounts paying little interest ( incidentally, so banks can make greater profits ) I'm talking about a section of society you seem to be less au fait with, those on low incomes working long hours, on poor contracts ( including zero hours) and still not able to make ends meet.

I think I will leave those rolling in it to pat the government on the back in this self- congratulatory thread.

Bexster

Archi_Bald

I am not hung up about anything, I simply replied to your assertion that "If people use money wisely, HM Tresury get less tax revenue."

I used one example, where we are talking about billions of pounds, to demonstrate that your assertion is wrong.

im-lost

eskbanker wrote: »

Not in all circumstances - as someone (colsten?) has pointed out on this site within the last few days, if people use taxable current accounts for saving instead of blindly following the mantra of cash ISAs being best, then both the saver and HMG win!

be careful what you wish for, the only reason you get higher interest on some accounts is because some people have savings etc that are working for the bank and not themselves.

The same way as some can have 'free' banking, interest free credit on credit cards by paying it off monthly etc, its all subsidised by those that aren't as savvy.

Take away those that are subsiding this for you, and you'll have to start paying for things you've taken for granted.

eskbanker

im-lost wrote: »

be careful what you wish for, the only reason you get higher interest on some accounts is because some people have savings etc that are working for the bank and not themselves.

The same way as some can have 'free' banking, interest free credit on credit cards by paying it off monthly etc, its all subsidised by those that aren't as savvy.

Take away those that are subsiding this for you, and you'll have to start paying for things you've taken for granted.

I didn't say I was wishing for this, just observing that in some cases better saving decisions generate more tax rather than less.

If such decisions also lead to lower profitability for banks then as you rightly say this could have broader consequences, but that's a different debate and arguably most things promoted on this site are for the consumers' benefit at the expense of the banks and so could ultimately be self-defeating!

Herbalus

There are numerous consequences of a particular action but consider this:
better advice -> better use of money -> wealthier population -> more money to spend on consumer goods -> more tax.

You could say, for example, that better advice -> less debt -> less bank revenue -> lower bank taxes BUT at the same time less debt -> lower interest payments -> more available money -> more tax.

colsten

Herbalus wrote: »

There are numerous consequences of a particular action but consider this:
better advice -> better use of money -> wealthier population -> more money to spend on consumer goods -> more tax.

You could say, for example, that better advice -> less debt -> less bank revenue -> lower bank taxes BUT at the same time less debt -> lower interest payments -> more available money -> more tax.

what's more, it's more tax revenue without raising the tax rates, and at the same time consumers enjoying themselves spending more money that pays more tax

gadgetmind

Launched in April, the pension reforms mean that people aged 55 and over are no longer required to buy a retirement income called an annuity with their pension pot.

A requirement that ceased to exist nearly a decade ago!