Keir Starmer

[Mr Kobayashi]

The ONS estimate that over 80% of public sector workers have a defined benefit pension, although that figure (the latest available it seems) was from 2019.

Also, although the LG pension scheme is funded and therefore invested in the market, it is still defined benefit, and so I don’t think it’s unreasonable to suggest that members in that scheme will be less concerned about market performance than someone with a defined contribution pension.

Are we pretending that a defined benefit is the same as a final salary scheme?

 

[BrianW]

Equally, if the stock market soars, the people with a defined benefit pension will be much better off.

People in the risk-taking, buccaneering private sector should be made up with this prospect - if they believe in the capitalist system.

Suppose the stock market had soared over the last 10 years, would there be a movement to give the public sector more to make up for their lesser pensions? Doubt it.

Anything with the stock market is a gamble. You can win big, but you can't moan when you lose. If you want security, with no massive upside or downside, buy gold, low-risk stock like gilts, or join the public sector and (generally) get shit wages for the responsibility level.

 

[west didsblue]

Even as a causal observer is terrible advice.

Or to be precise it’s far from insane to take your tax free allowance based on a rumour.

Making big financial decisions based on a rumour is a good idea? I’ll leave you to it.

I’ll take advice from someone qualified to give it.

 

[ganganvince]

Making big financial decisions based on a rumour is a good idea? I’ll leave you to it.

I’ll take advice from someone qualified to give it.

Not insane as you have 30 days to reverse decision and return money.

 

[Alan Harper's Tash]

Making big financial decisions based on a rumour is a good idea? I’ll leave you to it.

I’ll take advice from someone qualified to give it.

The red under the bed seems to be the ultimate monster to some.

 

[Brewster's millions]

Are we pretending that a defined benefit is the same as a final salary scheme?

Most (normal) people use the terms interchangeably, yes.

 

[Vic]

The use of that phrase should mean the rest of your post is ignored. The majority of public sector workers do not have final salary pension schemes.

Anyone in the LG pension scheme also has their pensions invested in the stock market.

And in property. Our local supermarket is owned by Tameside MBC as agent for the LG pension fund.

Or art?

The art collection of the British Rail Pension Fund

Fine art and British Rail may not seem like they have much in common, but for several decades British Rail, through its pension fund, was a major

www.weirduniverse.net

 

[bluenova]

Most (normal) people use the terms interchangeably, yes.

I think that might be a bit out of date. Lots of defined benefit schemes are now 'average salary' rather than 'final', so using them interchangeably would cause confusion.

The original point about someone on a defined benefit scheme being less concerned about the stock market does make sense though. (although one of my old jobs had a defined scheme, and they have been sending me 'worrying' letters for years now!)

 

[kaz7]

The use of that phrase should mean the rest of your post is ignored. The majority of public sector workers do not have final salary pension schemes.

Anyone in the LG pension scheme also has their pensions invested in the stock market.

I think it was cameron who started the phrase when he was pitting public sector against private sector , like you say , it is not true

 

[Vic]

I think that might be a bit out of date. Lots of defined benefit schemes are now 'average salary' rather than 'final', so using them interchangeably would cause confusion.

The original point about someone on a defined benefit scheme being less concerned about the stock market does make sense though. (although one of my old jobs had a defined scheme, and they have been sending me 'worrying' letters for years now!)

That's because a defined benefit scheme may not have enough income to meet its obligations. Lots took "pension holidays" when investments were doing well then later ran out of money when returns fell.