The Labour Government

[I'm With Stupid]

I’m talking about the workplace pension scheme that was brought in around 2016 mate. Starts off at 1% employee, 1% employer in the first year, then 3%/2% in the second year, and 5%/3% for each year after that. It came in way too late for me to end up with a nice retirement pot from it as I was 46 at the time but mine is still worth nearly £20k already. Someone saving into one of those from the age of 18 or 21 ought to see it grow considerably over the next 35-40 years. And 5% deducted from your wages at source isn’t really going to be missed. He could do that and still save enough to take a few weeks off and travel the world. Especially as the lucky fucker isn’t even paying any keep to his parents yet!

Is 5% going to cover your retirement? The advice I’ve heard is that you should half the age that you start saving, and that’s the percentage you should save.

 

[sir baconface]

There are a ton of people at my work sat waiting to retire in their late 50's/early 60s, they'll all leave on final salary pensions with houses already paid for, their houses will be worth 100x what they originally paid. They're probably debt free and don't have student loans to repay because they were free.

It's absolutely impossible that anybody working today will get those kind of benefits and that standard of living. People are talking up private pensions because the fact is workplace pensions alongside the state pension aren't going to be enough. And that's if they can even afford to put money into a private pension in the first place.

I keyed in mine recently and I only need to put in a measly extra £500pm to get a decent standard of living in retirement, and that's retiring at retirement age, not 60! My mortgage won't be paid off until I'm 65. My house will be my pension and unlike the oldies I'll probably have to sell it to get the income.

I can understand why some have little sympathy for the older folk. Young people are absolutely screwed, plain and simple.

There is some truth here but the situation will be highly variable.

Many of today’s young adults will be the beneficiaries of the things you mention. It wouldn’t be unusual for a couple to inherit a share in two properties with a combined value in excess of £1m. Not to mention other assets.

Others will get diddly squat, of course.

 

[M18CTID]

Is 5% going to cover your retirement? The advice I’ve heard is that you should half the age that you start saving, and that’s the percentage you should save.

Well it’s 8% when you factor in the 3% that the employer has to put in. Suppose that’s not far off if you’re 18-21 going off your formula but no good if you start doing it at 40.

Of course, it will also depend on where the money is invested and how much it grows over the years. I’ve changed mine from a low-risk fund to a high-risk fund as the low-risk was hardly growing at all. Maybe not the wisest decision for someone in their 50s but for someone in their 20s they have time on their side to take that risk.

 

[Oldham Exile]

It’s those who don’t qualify for pension credit with only the state pension coming in who are going to get unfairly whacked here. Means testing it is fair, just set it at the right place.

On COVID fraud, would like them to focus on trying to get the loans bit sorted. The PPE one I’ve long said this should be managed through taxation. Anyone making extraordinary profits compared to pre and post COVID should pay an exceptional rate of tax. We did this during WW1 for profiteering, they paid 100% tax on it, even if we whacked them with a 75% bill they’d still have done well. I think that horse may have bolted though and it’s hard now to retrospectively apply it as it’s a few years ago - but if she did it I’d be a big fan.

This doesn't seem like a thread for the faint-hearted - but just as a thought re Covid fraud - I see this as (at least) 2 distinct issues

1. The PPE stuff - there should be a thorough investigation on how contracts were let - and rules on procurements ignored without proper governance - people should end up in prison I think

2. Grants to self-employed etc. - I would be surprised if the vast majority of us don't know at least one person that made a claim that was not needed. I am talking about builders, plumbers, chippies, scaffolders etc - people that took grants even though they carried on working. I think that there should be an amnesty for people to pay back before an investigation starts

 

[hilts]

Divisions everywhere

 

[Scottyboi]

Divisions everywhere

Can he cover Rodri?

 

[metalblue]

This doesn't seem like a thread for the faint-hearted - but just as a thought re Covid fraud - I see this as (at least) 2 distinct issues

1. The PPE stuff - there should be a thorough investigation on how contracts were let - and rules on procurements ignored without proper governance

2. Grants to self-employed etc. - I would be surprised if the vast majority of us don't know at least one person that made a claim that was not needed. I am talking about builders, plumbers, chippies, scaffolders etc - people that took grants even though they carried on working. I think that there should be an amnesty for people to pay back before an investigation starts

I think on 1 it’s going to be really hard to prove any actual fraud occurred and will take a long time. If we want to recoup any money it’s going to be far better to draw a line under it and just tax them, we can then investigate any that look suspect at our leisure. Also we need to learn lessons here - ie is it more economical to stockpile PPE that goes out of date or just accept market conditions on this 1 in 100 year event. How can we better protect ourselves, proper plans that don’t involve panicking etc. So three actions for me, recoup tax payer money, learn lessons and finally investigate any cases where fraud is a possibility and chuck folk in prison if found guilty.

On 2 yes I certainly do. Will take a lifetime to go through it all though. I think there was a figure of £5bn for fraudulent bounce back loans? that they’ve been trying to recoup maybe we can progress that a bit. Might just have to count our losses here. No easier solutions on this one.

 

[The Future’s Blue!]

I think on 1 it’s going to be really hard to prove any actual fraud occurred and will take a long time. If we want to recoup any money it’s going to be far better to draw a line under it and just tax them, we can then investigate any that look suspect at our leisure. Also we need to learn lessons here - ie is it more economical to stockpile PPE that goes out of date or just accept market conditions on this 1 in 100 year event. How can we better protect ourselves, proper plans that don’t involve panicking etc. So three actions for me, recoup tax payer money, learn lessons and finally investigate any cases where fraud is a possibility and chuck folk in prison if found guilty.

On 2 yes I certainly do. Will take a lifetime to go through it all though. I think there was a figure of £5bn for fraudulent bounce back loans? that they’ve been trying to recoup maybe we can progress that a bit. Might just have to count our losses here. No easier solutions on this one.

Morning Rishi.

 

[metalblue]

Morning Rishi.

If I had his money mate I’d burn my own.

 

[Churchlawtonblue]

This doesn't seem like a thread for the faint-hearted - but just as a thought re Covid fraud - I see this as (at least) 2 distinct issues

1. The PPE stuff - there should be a thorough investigation on how contracts were let - and rules on procurements ignored without proper governance

2. Grants to self-employed etc. - I would be surprised if the vast majority of us don't know at least one person that made a claim that was not needed. I am talking about builders, plumbers, chippies, scaffolders etc - people that took grants even though they carried on working. I think that there should be an amnesty for people to pay back before an investigation starts

By grants I guess you mean loans? By definition if your business qualified for a grant you don't need to pay it back.