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    • Former MSE Paloma
    • By Former MSE Paloma 15th Jan 15, 8:34 AM
    • 526Posts
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    Former MSE Paloma
    MSE News: Schools to teach teenagers about pension planning
    • #1
    • 15th Jan 15, 8:34 AM
    MSE News: Schools to teach teenagers about pension planning 15th Jan 15 at 8:34 AM
    "Schools are to provide those aged 13 and over with lessons on pension planning, the Government has announced ..."

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    Schools to teach teenagers about pension planning



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • kidmugsy
    • By kidmugsy 15th Jan 15, 11:43 AM
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    kidmugsy
    • #2
    • 15th Jan 15, 11:43 AM
    • #2
    • 15th Jan 15, 11:43 AM
    Many of whom have trouble with the 3 Rs. Good luck with that.
    • Oblivion
    • By Oblivion 15th Jan 15, 1:04 PM
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    Oblivion
    • #3
    • 15th Jan 15, 1:04 PM
    • #3
    • 15th Jan 15, 1:04 PM
    It would be a subject worth teaching if the government (of whichever flavour) didn't keep moving the goalposts whenever it suited them.
    ... Dave
    Happily retired and enjoying my 13th year of leisure

    I am cleverly disguised as a responsible adult.

    Bring me sunshine in your smile
    • Pincher
    • By Pincher 15th Jan 15, 1:35 PM
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    Pincher
    • #4
    • 15th Jan 15, 1:35 PM
    • #4
    • 15th Jan 15, 1:35 PM
    A waitress brings the bill, the customer asks:
    "would you like a tip?"


    She smiles.


    Customer says: "Marry a doctor."


    ------------


    A woman runs into a busy train station, and shouts:
    "DOCTOR, DOCTOR, is there a doctor in the house!?"


    A man replies: "Yes, madam, I'm a doctor, how can I help?"


    She says: "Oi, doctor. Have I got a daughter for you!"
    • Ectophile
    • By Ectophile 15th Jan 15, 8:56 PM
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    Ectophile
    • #5
    • 15th Jan 15, 8:56 PM
    • #5
    • 15th Jan 15, 8:56 PM
    Anything they are taught will most likely be out-of-date by the time they leave school, let alone when they retire.

    In the last few years, the state has gone from encouraging people to opt out of the state pension to put the money into a private one. Then they said it wasn't such a good idea. Now they have stopped it entirely, and you have to pay into the state scheme again.
  • jamesd
    • #6
    • 16th Jan 15, 12:28 AM
    • #6
    • 16th Jan 15, 12:28 AM
    Those last few years started back in 1978, 37 years ago, almost a full working life, when contracting out was first introduced. The flat rate changes have reinforced the idea that it was a good idea to be contracted out at least into personal pensions.

    Stopping contracting out is a money grab by government to help to fund paying pensions for those who don't work much by charging those who work a lot. You don't stop paying the NI even if you've a full entitlement to the state pension so forcing people to stay in gets that money with nothing more to pay out. While with contracting out you'd continue to benefit from working more.
    • waspsandjam
    • By waspsandjam 16th Jan 15, 10:30 AM
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    waspsandjam
    • #7
    • 16th Jan 15, 10:30 AM
    • #7
    • 16th Jan 15, 10:30 AM

    An excellent idea. I think most people (including teachers) could do withknowledge of the principles of pensions (which don’t change) and investmentcompounding.

    It’s hard for children to see 10 years into the future, let alone 40+ so it’sgoing to be a challenge. Some 40 year compound calculators changing monthlycontributions and investment returns may help illustrate the point and make itmore involved.

    Showing pension rules that governments can change, and which they havechanged, is also very important to reduce uncertainty and misconceptions. Thiscould include pension options which offer more protection against governmentinfluence e.g. private / company / public sector / state.
    • gadgetmind
    • By gadgetmind 16th Jan 15, 12:45 PM
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    gadgetmind
    • #8
    • 16th Jan 15, 12:45 PM
    • #8
    • 16th Jan 15, 12:45 PM
    You don't stop paying the NI even if you've a full entitlement to the state pension so forcing people to stay in gets that money with nothing more to pay out.
    Originally posted by jamesd
    We're both going to knock work on the head once we fully qualify for the new single tier.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • gadgetmind
    • By gadgetmind 16th Jan 15, 12:46 PM
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    gadgetmind
    • #9
    • 16th Jan 15, 12:46 PM
    • #9
    • 16th Jan 15, 12:46 PM
    How on earth are teachers, most of whom have zero knowledge regards the kind of pensions that most people have (or even that teachers themselves have!) going to be able to explain this properly to kids?

    I expect they'll be using the old "one page ahead" approach.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
    • Pincher
    • By Pincher 16th Jan 15, 3:15 PM
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    Pincher
    How on earth are teachers, most of whom have zero knowledge regards the kind of pensions that most people have (or even that teachers themselves have!) going to be able to explain this properly to kids?

    I expect they'll be using the old "one page ahead" approach.
    Originally posted by gadgetmind


    What about sentencing all these bankers who fixed LIBOR rates etc. to do some community service by doing school visits?


    From April, there should be some unemployed annuity clerks looking to retrain.


    If the EPC inspectors haven't starved to death yet, they can retrain as well.
    • Credit-Crunched
    • By Credit-Crunched 19th Jan 15, 3:52 PM
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    Credit-Crunched
    Teachers talking about pensions! Incredible.

    They do not think that a career average final salary pension is a decent one!

    Maybe when they look at the returns on a DC pension, they make take a step back and realise, that the DB ain't too bad after all!
  • ExMugPunter
    Teachers talking about pensions! Incredible.

    They do not think that a career average final salary pension is a decent one!

    Maybe when they look at the returns on a DC pension, they make take a step back and realise, that the DB ain't too bad after all!
    Originally posted by Credit-Crunched
    Please don't tar ALL of us with the same brush.

    Many of us, yes, but not all!
  • ExMugPunter
    Personally, I think teaching personal finance is a good idea. However, I don't think it can go into the detail of pension planning or such like.

    I think that highlighting the difference between a consumerist lifestyle (or 'looking' rich) compared to actually being wealthy would be a good start.

    Show them how they could actually be relatively wealthy rather than merely looking 'rich'.

    Highlight the fact that many of the people they look up and perceive as being 'rich' (sports and pop stars) are actually bankrupt or on the verge of it.

    I think the biggest change we could make to a kids life is to get them to realise that they don't need all this 'stuff' and having it is not a sign of wealth. In fact chasing it, is actually detrimental to their wealth.

    I would love to teach something like that, but as a Primary school teacher my scope will be somewhat limited.

    However, that said I have often thought of showing my Year 4's (8 and 9 Years old's) a series of pictures designed to get them thinking about wealth and to challenge their obsession with 'stuff'.
    I would show them a photo of a 'blinged up' person walking into a bank alongside an older, more conservatively dressed person and ask who they think is the 'richest' or most wealthy?
    I think their opinions would be quite interesting, especially if then went further and looked at theoretical bank balances and lifestyles etc.

    Hopefully they would then realise that true wealth isn't shown in flash cars, clothes and phones etc. but more of a lifestyle of sensible choices.

    If it only got a few of them think a bit deeper about money, it would be worth it.
    • chucknorris
    • By chucknorris 20th Jan 15, 5:35 AM
    • 10,020 Posts
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    chucknorris
    Please don't tar ALL of us with the same brush.

    Many of us, yes, but not all!
    Originally posted by ExMugPunter


    Absolutely! I'm in the TPS and I know that the pension is fantastic, in fact now that I have bought the max allowed additional pension (which is also a great deal), I am going to retire next year. If I could buy more additional pension right now, I would work longer. I could actually buy more, but as a transitional member I would have to wait another 4 years before being eligible to start buying additional pension in the new scheme.
    Chuck Norris can kill two stones with one bird
    The only time Chuck Norris was wrong was when he thought he had made a mistake
    Chuck Norris puts the "laughter" in "manslaughter".
    I've started running again, after several injuries had forced me to stop
    • ViolaLass
    • By ViolaLass 20th Jan 15, 6:17 AM
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    ViolaLass
    Problem is, you can't (or least, don't) strike to say "We're among those teachers who don't have too much of a problem with these changes."
  • Dunnit
    ...
    I would show them a photo of a 'blinged up' person walking into a bank alongside an older, more conservatively dressed person and ask who they think is the 'richest' or most wealthy?
    ...
    If it only got a few of them think a bit deeper about money, it would be worth it.
    Originally posted by ExMugPunter
    Strongly agree with what you say as I vainly try to teach that to my children.

    I would want you to teach them the comparator rather than the superlative.
    • Credit-Crunched
    • By Credit-Crunched 20th Jan 15, 9:05 AM
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    Credit-Crunched
    Absolutely! I'm in the TPS and I know that the pension is fantastic, in fact now that I have bought the max allowed additional pension (which is also a great deal), I am going to retire next year. If I could buy more additional pension right now, I would work longer. I could actually buy more, but as a transitional member I would have to wait another 4 years before being eligible to start buying additional pension in the new scheme.
    Originally posted by chucknorris
    Sadly you are in the minority.

    "During a strike in October more than 3,000 schools were shut or partially closed in London, Cumbria, the South East, North East and South West"

    Most of the teachers I know, still feel that the pension is less than generous, and that it should be a final salary pension.

    My point was that if teachers actually did the maths, they would be amazed at how much they would have to contribute to a DC scheme to get the same level of renumeration from a DB scheme. It makes their 7.2% - 12.4% look like peanuts.

    So in that instance it might be a worthwhile exercise, if only to open teachers eyes, as without a true understanding of the real issues that people in DC schemes face, how can they teach about it.
    • Andy L
    • By Andy L 20th Jan 15, 9:12 AM
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    Andy L
    Who are they going to get who is qualified to teach it & how are they going to find time to fit it into the school day?
    • ViolaLass
    • By ViolaLass 20th Jan 15, 9:15 AM
    • 5,579 Posts
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    ViolaLass
    Most of the teachers I know, still feel that the pension is less than generous, and that it should be a final salary pension.
    Originally posted by Credit-Crunched
    Or is it that they feel it is simply less generous than it was. Why would one welcome a lessening of one's perks? I know it's still a good deal but that doesn't the old one wasn't better.
    • atush
    • By atush 20th Jan 15, 9:47 AM
    • 17,626 Posts
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    atush
    Of course the old one was better, that is why it was too expensive?

    Doesn't mean that MOST (obv not all teachers as we see here) teachers dont realize how good their pensions are and what even the new one would cost them to fund themselves.

    So yes, having to LEARN about pensions in order to teach teenagers might be a good thing.
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