It's a pension crisis as people aren't saving as much and they are living longer. It's the exact opposite of what you are saying.Again, have you seen the pensions crisis that currently grips the nation?
That's either simply not true or you're in a weird scheme.
Mind telling me what it is?
Annuities pay around 5% based on current rates and likely time span of payments (20 years).
But you're right, people need to put more aside for their own retirement than they do at present. Either that or not live as long. Annuity rates would be a lot higher if everyone started retiring at 65 and dying at 68 again.
The whole point of actuaries is so that the average person will get back what they put in and more before they die.Then when you get to the end annuity's are so low, that you don't get back what you put in before you are dead.
It's a pension crisis as people aren't saving as much and they are living longer. It's the exact opposite of what you are saying.
Based on the "pension crisis" you're talking about then absolutely it's important that companies do well to increase the capitalisation of the funds to make up for the meagre amount people are saving towards their own retirement.
The whole point of actuaries is so that the average person will get back what they put in and more before they die.
At present for those retiring at 65, it means living until you're 80 (which is below the forecast life expectancy for someone that is 65) taking into account the 25% tax free cash available at crystallisation.
You also have the option of phased draw down to enjoy a great income when you first retire.
Actuaries are the most sinfully dull people in Christendom.The whole point of actuaries is so that the average person will get back what they put in and more before they die.
At present for those retiring at 65, it means living until you're 80 (which is below the forecast life expectancy for someone that is 65) taking into account the 25% tax free cash available at crystallisation.
You also have the option of phased draw down to enjoy a great income when you first retire.
I have one that quoted £250,000 fund would expect a return £6k PA = I have to live to 107 to get my cash back. No way I will make 80
There is, of course, another pension crisis looming, if this freedom of movement issue isn't nailed down very soon. We all know that the state pension has never been invested and has been paid for by the people who are working. If we're not careful, the working age, tax paying, healthy Europeans who are here will be leaving and the frail, elderly pensioners currently living abroad, will all be coming back. If taxes aren't to rise I cannot see how this will be anything close to being affordable.It's a pension crisis as people aren't saving as much and they are living longer. It's the exact opposite of what you are saying.
Based on the "pension crisis" you're talking about then absolutely it's important that companies do well to increase the capitalisation of the funds to make up for the meagre amount people are saving towards their own retirement.
You could take £62,500 out in cash, tax free. and take the other £187,500 out and pay tax on it. If you took it out in moderate amounts, you'd only have to pay 20% tax, and you will have saved at least that much when the money went it. Either way, you can withdraw your money and have paid less tax on it than had you never bothered to save.
You're very very wrong.
And by your reckoning, the Tories nearly won in Scotland.