This Year's Most Stupid Idea So far?

westv

https://www.bbc.com/news/uk-politics-48506460


Trade part of your pension to get on the housing ladder.
I can't believe anybody would come up with such a plan.

JoeCrystal

I don't have a problem with such an idea as long as you have to pay the money back in within a specific time. But yes, it is a stupid idea. However, the award for this year's most stupid idea has to go to a person who wants to put the pension fund into Bitcoin. :rotfl:

Paul_Herring

Government: "How can we keep house price inflation above zero this week? I know - allow people to raid their pension."

DWP: _pale_
Gullible public: :beer:
Everyone else: :eek:

HardCoreProgrammer

Au contraire. I did not make any pension contributions until I was on the housing ladder and had an emergency fund saved up - which was another way of raiding pension funds to pay for house deposit. I see nothing wrong with that.

As I said many times on this forum in the past, being owner (rather than tenant/lodger) improves your quality of life immediately, while you may not necessarily live long enough to be able to draw on your pension.

crv1963

westv wrote: »

https://www.bbc.com/news/uk-politics-48506460


Trade part of your pension to get on the housing ladder.
I can't believe anybody would come up with such a plan.

Just an idiotic idea to catch headlines I hope! There wouldn't be enough time before a GE to implement it I also hope! The idea goes against all the ideas about saving young and benefiting from the power of compound interest.

Still it is said a country gets the rulers it deserves! Let us hope this wannabe PM doesn't make the final two.

mumf

HardCoreProgrammer wrote: »

Au contraire. I did not make any pension contributions until I was on the housing ladder and had an emergency fund saved up - which was another way of raiding pension funds to pay for house deposit. I see nothing wrong with that.

As I said many times on this forum in the past, being owner (rather than tenant/lodger) improves your quality of life immediately, while you may not necessarily live long enough to be able to draw on your pension.

Could not agree more.I have been free and clear of mortgages for many years.My dad died of Cancer at 59, but left mum his pension pot AND a paid off house,which was worth more than the pension! Mum is now very well off.

POPPYOSCAR

mumf wrote: »

Could not agree more.I have been free and clear of mortgages for many years.My dad died of Cancer at 59, but left mum his pension pot AND a paid off house,which was worth more than the pension! Mum is now very well off.

Yes I agree also.

My brother died last year at 47.

His family at least have a roof over their head and no mortgage to pay due his life insurance.

Same when my nephew died at 39 4 years ago.

Has changed my view on pension saving to an extent.

Yellow_mango

Hmm. Whilst obviously it is important to have enough income to live off in retirement, having a paid off house to live in represents significant savings on rental costs. With built in inflation protection (ie you’ll be saving rental at whatever level it might be in the future).

So arguably it’s not a totally stupid idea to get on the property ladder and pay off the mortgage as soon as possible and then put the saved mortgage payments into a pension.

Thrugelmir

westv wrote: »

https://www.bbc.com/news/uk-politics-48506460


Trade part of your pension to get on the housing ladder.
I can't believe anybody would come up with such a plan.

Like every idea. Works providing the rules are ok.

Makes some headlines on a quiet news day. Likely to simply fad on away.

barnstar2077

This makes about as much sense as the help to buy scheme. House prices are too high. Instead of coming up with a way of keeping house prices at the same level until peoples wages catch up and make them more affordable they just keep coming up with ways that you can find that little bit more money, which in turn will increase house prices more. Genius.

Malthusian

HardCoreProgrammer wrote: »

Au contraire. I did not make any pension contributions until I was on the housing ladder and had an emergency fund saved up - which was another way of raiding pension funds to pay for house deposit. I see nothing wrong with that.

There would have been a lot wrong with it if your employer did matching employer contributions or, worst of all, you were eligible for a defined benefit pension scheme.

Quite possibly that didn't apply, but it applies to a lot more people now due to auto-enrolment.