If Pension Freedom Had Never Happened?

TBC15

Malthusian wrote: »

True. But over a population, more indivduals hoard their money for fear of running out than spunk it up the wall.

For some people spunking it up the wall is their objective. YOLO. Live for today. Carpe rotam. Not how I would want to live my life but the great thing about freedom is that I don't have to.

The objective of drawdown / pension freedom is to give people the choice, not make everyone better off.

I thought walls were reserved for urine, is this a new trend?

Thrugelmir

Malthusian wrote: »

True. But over a population, more indivduals hoard their money for fear of running out than spunk it up the wall.

The UK is hardly a nation of savers. In fact the reverse. Living for today in the main the mantra. We've a generation heading towards retirement with interest only mortgages to settle. In the medium term as things stand. Those with pure cash hoarded are going to see it eroded by inflation.

ratechaser

Thrugelmir wrote: »

The UK is hardly a nation of savers. In fact the reverse. Living for today in the main the mantra. We've a generation heading towards retirement with interest only mortgages to settle. In the medium term as things stand. Those with pure cash hoarded are going to see it eroded by inflation.

One of my passing concerns is that there will be enough people p*ssing (other bodily fluids are available...) their pension drawdown against the wall to cause a rethink on the current very flexible rules before I can get my hands on my own money... the thought of being forced into buying an annuity in future is not a pleasant one...

Thrugelmir

ratechaser wrote: »

One of my passing concerns is that there will be enough people p*ssing (other bodily fluids are available...) their pension drawdown against the wall to cause a rethink on the current very flexible rules before I can get my hands on my own money... the thought of being forced into buying an annuity in future is not a pleasant one...

Currently you being forced into buying equities............ Central Bank policies aren't just a whim.

ratechaser

Thrugelmir wrote: »

Currently you being forced into buying equities............ Central Bank policies aren't just a whim.

And it's done me very well over the long term! But in fact I've recently decided to shift substantially towards gilts/bonds. Personal view but I think the chance of a a substantial correction has exceeded my risk tolerance...

Feel free to come back in 1/2/5 years and tell me I was wrong

Malthusian

Thrugelmir wrote: »

The UK is hardly a nation of savers. In fact the reverse.

You've switched the conversation to accumulation whereas we were talking about decumulation. People who aren't savers won't have significant pension funds to decorate the wall with. Those who do are more likely to hoard the money for fear of running out, a problem that in theory an annuity can solve - but practically speaking can't if the rates are derisory.

We've a generation heading towards retirement with interest only mortgages to settle.

No social problem there, they can sell their house. Or switch the mortgage onto equity release / pensioner mortgage. If there is negligible equity they are in the same position as a lifetime renter, only better because lifetime renters can't get pensioner mortgages.

jamesd

ratechaser wrote: »

Feel free to come back in 1/2/5 years and tell me I was wrong

You can't really be wrong. It'd be a bit like complaining about carrying an umbrella on a sunny day when the forecast gave an 80% chance of rain. The 20% is allowed to happen and doesn't mean that preparing for the 80% was wrong.

Thrugelmir

ratechaser wrote: »

And it's done me very well over the long term! But in fact I've recently decided to shift substantially towards gilts/bonds.Personal view but I think the chance of a a substantial correction has exceeded my risk tolerance...

Feel free to come back in 1/2/5 years and tell me I was wrong

Are you in the secular stagnation camp?

If we all held the same views there'd be no market. Takes two to trade.