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    • MSE Guy
    • By MSE Guy 12th Oct 10, 10:02 AM
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    MSE Guy
    MSE News: Pensioners the winners as inflation stays high
    • #1
    • 12th Oct 10, 10:02 AM
    MSE News: Pensioners the winners as inflation stays high 12th Oct 10 at 10:02 AM
    This is the discussion thread for the following MSE News Story:

    "The RPI inflation measure, currently used to calculate the state pension – stood at 4.6% last month ..."

    Last edited by MSE Guy; 12-10-2010 at 11:29 AM.
Page 1
    • dunstonh
    • By dunstonh 12th Oct 10, 10:30 AM
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    dunstonh
    • #2
    • 12th Oct 10, 10:30 AM
    • #2
    • 12th Oct 10, 10:30 AM
    MSE News: Pensioners the winners as inflation stays high
    High inflation doesnt help pensioners. Many will have level income from pension annuities or rely too heavy on savings accounts to provide an income (leaving the capital and income subject to inflation risk as many wont use investments).
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Sceptic001
    • By Sceptic001 12th Oct 10, 11:03 AM
    • 1,099 Posts
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    Sceptic001
    • #3
    • 12th Oct 10, 11:03 AM
    • #3
    • 12th Oct 10, 11:03 AM
    High inflation doesnt help pensioners.
    Originally posted by dunstonh
    Indeed. How can it be a "blow" to get a 2.5% increase when prices have fallen, but to be a winner to get a 4.6% increase when prices have risen 4.6%?

    (Incidentally, there is a typo in the article: "the current 0.%" should read "the current 0.5% figure.)
    • margaretclare
    • By margaretclare 12th Oct 10, 11:12 AM
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    margaretclare
    • #4
    • 12th Oct 10, 11:12 AM
    • #4
    • 12th Oct 10, 11:12 AM
    Your article mentions 'the joint pension'.

    There is no such thing as a 'joint pension'!
    r ic wisdom funde, r wear ic eald.
    Before I found wisdom, I became old.
    • zygurat789
    • By zygurat789 12th Oct 10, 11:56 AM
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    zygurat789
    • #5
    • 12th Oct 10, 11:56 AM
    • #5
    • 12th Oct 10, 11:56 AM
    Last year the increase was 2.5% when it could have been minus 0.9%, ie an increase of 3.4%. I'm sure Dave would think it fair if the pensioners made up for last years generosity by only getting 1.2% increase this year.
    The only thing that is constant is change.
    • alanq
    • By alanq 12th Oct 10, 12:06 PM
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    alanq
    • #6
    • 12th Oct 10, 12:06 PM
    • #6
    • 12th Oct 10, 12:06 PM
    If a pensioners' spending matched the pattern of RPI they would not be winners but merely break even with their pension. However, pensioners are likely to spend a greater proportion of their income on fuel, food and clothing (which have gone up) and less on air fares (that have gone down) than the RPI assumes. So pensioners lose.

    The effect of inflation on any savings that they may have will also make them losers.

    So how does high inflation make pensioners "winners"?

    Yet another inappropriate MSE headline that is not supported by the facts or even the information contained within the article itself.

    Update: The title seems to have been amended to "State pension to rise as inflation stays high".
    Last edited by alanq; 12-10-2010 at 12:13 PM.
    • margaretclare
    • By margaretclare 12th Oct 10, 12:21 PM
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    margaretclare
    • #7
    • 12th Oct 10, 12:21 PM
    • #7
    • 12th Oct 10, 12:21 PM
    Air fares??? How many people spend on air fares as a regular and repeatable part of their budget? Even if you go on holiday twice a year that hardly compares with grocery shopping that you do every week.

    When on holiday we tend to go by overnight ferry rather than by air. We hate airports!! So, our main spending is on petrol and food. Yes, food is continuing to rise in price. But we're still OK, still managing to save, have just changed the car so paying more in car insurance but less in road fund tax. Clothes - we mostly have enough, don't need any more new clothes.
    r ic wisdom funde, r wear ic eald.
    Before I found wisdom, I became old.
    • jem16
    • By jem16 12th Oct 10, 12:48 PM
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    jem16
    • #8
    • 12th Oct 10, 12:48 PM
    • #8
    • 12th Oct 10, 12:48 PM
    Update: The title seems to have been amended to "State pension to rise as inflation stays high".
    Originally posted by alanq
    Title of the the thread not changed though but then MSE Guy is known for his sensationalism type headlines for threads.
    • Noble Savage
    • By Noble Savage 12th Oct 10, 1:35 PM
    • 136 Posts
    • 151 Thanks
    Noble Savage
    • #9
    • 12th Oct 10, 1:35 PM
    • #9
    • 12th Oct 10, 1:35 PM
    Title of the the thread not changed though but then MSE Guy is known for his sensationalism type headlines for threads.
    Originally posted by jem16
    I'm staying out of it. Last time I tried to correct one of these MSE 'News' stories for inaccuracy/sensationalism (deposit protection 'rocketing' to 85k when the figure hasn't even been agreed yet) I got put back in my box by MSE Dan and even ML himself!
    Last edited by Noble Savage; 12-10-2010 at 1:41 PM.
    • hansi
    • By hansi 12th Oct 10, 7:00 PM
    • 2,903 Posts
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    hansi
    I guess this increase only applies to the Basic State Pension. As usual, we'll be conned out of any increase to the SSP!
    • Loughton Monkey
    • By Loughton Monkey 13th Oct 10, 7:55 PM
    • 8,706 Posts
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    Loughton Monkey
    I have early retired, and am drawing two of my pensions. Other pensions and the state pension will come later.

    I remember back in the 'good old days' of around 1975, when as a mere slip of a lad in the office, we were getting 'cost of living escalators' in our salary every month.

    RPI was peaking at around 26% that year.

    Should we get a return to this scale of inflation, does this mean I should (as a pensioner) be deleriously happy?
    • ManAtHome
    • By ManAtHome 13th Oct 10, 8:25 PM
    • 8,200 Posts
    • 5,327 Thanks
    ManAtHome
    MP/MPC etc pensioners will certainly be the high inflation winners - as stated in a few earlier posts very few other pensioners will be.
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