Anna B Posted April 8, 2015 Share Posted April 8, 2015 Whereas if Labour had brought it in, it would be seen as 'Liberating peoples hard earned money from Greedy financial institutions' ????? I don't argue that some people are going to waste it, some will blow it all on rubbish, piddle it up the wall or give the lot into dodgy investments. but it's just giving people access to their own saved money - you can't control people for ever, at some point you've got to let them make their own choices. If you can't sensibly control your money into your 50's then it's a miracle you've made it this far in the first place. I agree with this to a certain extent. One of the biggest problems is that there is a whole raft of the population who are not investment savvy, and the help they need is not ready. There is also a problem with tax, low interest rates, dodgy investments, con-men, having to pay for care, and pure stupidity. A lot of people only care about the present and can't see further than the end of next week. Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted April 8, 2015 Share Posted April 8, 2015 One of the biggest problems is that there is a whole raft of the population who are not investment savvy, and the help they need is not ready. They don't have to be. People can still buy an annuity and give that responsibility to someone else and get an income in return. With annuity markets at record low levels, thanks to extended life expectancy and Quantative Easing; forcing people to purchase them couldn't remain. It's a step in the right direction for market liberalisation but, like all freedoms, there is always a risk. Link to comment Share on other sites More sharing options...
loraward Posted April 8, 2015 Share Posted April 8, 2015 It is permissive legislation. Not all pension providers will be abe or willing to offer certain options. People however do have the right to move their money to a Pension Provider that can offer the services they desire. -------------- That depends on if the tax you'd pay is higer or lower than the APR of the debt. But, you've got an outline of one scenario. Equally though, what are people then going to live on when they reach old age if they've paid off debt/mortgage with their pension money? A small state pension. They will have more to live off if the interest on the debt they pay off is higher than the income from an annuity. Link to comment Share on other sites More sharing options...
sgtkate Posted April 8, 2015 Share Posted April 8, 2015 Some people only have a very small pension pot and would find a lump sum more useful than a tiny yearly pension. A £20,000 pot would give you less than a £1000 a year, if you have credit card debts of £20,000 then paying that off with all your pot is far better than taking a yearly income. Paying off larger debt such as a Morganne could be more beneficial than taking a regular income. Annuity rates dive towards all-time low. The level of guaranteed income that savers can get in return for their pension pots has been shrinking over the past 10 years The best annuity deal on the market today will allow a healthy 65-year-old to swap £100,000 of pension savings for a fixed income of £5,456 a year for the rest of their life. To pay off a £100,000 debt/mortgage over 10 years at 5% interest would require a repayment of £1061 a month which is over double the income from the pension, so using the pension to pay it off all at once saves you £606 a month. Basically, if everyone had your level of logical thought and maths there wouldn't be a problem. But most people just go 'oh, look, I can buy a jag now' and then in 5 years time go complaining to the Daily Mail about how they've been forced to live in an airport because they were somehow mis-sold something (or made terrible decisions based on greed) and then some kindly soul opens up a a justgiving account for them and they get thousands. That's how it works isn't it? As sometimes things come across as sarcasm when they aren't....that was a genuine compliment to you loraward! Link to comment Share on other sites More sharing options...
Guest sibon Posted April 8, 2015 Share Posted April 8, 2015 A small state pension. They will have more to live off if the interest on the debt they pay off is higher than the income from an annuity. Indeed:D This is excellent legislation that allows individual choice. There is no danger of anybody impoverishing themselves, because we already have the state pension as a safety net. It will set a lot of people free from the clutches of the financial services industry. Well done Tories:) Link to comment Share on other sites More sharing options...
loraward Posted April 8, 2015 Share Posted April 8, 2015 Indeed:D This is excellent legislation that allows individual choice. There is no danger of anybody impoverishing themselves, because we already have the state pension as a safety net. It will set a lot of people free from the clutches of the financial services industry. Well done Tories:) There is every danger of some people impoverishing themselves, but that doesn't make the legislation wrong. Link to comment Share on other sites More sharing options...
The Joker Posted April 8, 2015 Share Posted April 8, 2015 I just think this is a licence for stupid people. Why would people want to take all or some of their pension money out early. Its taxed anyhow. Why not retire normally like the rest of us and draw on a pension. Because the ConDemNation coalition have raised the retirement age for men. And by the time I retire, I expect the retirement age will have gone up again to to 80! And I don't expect to live that long ! ! ! Link to comment Share on other sites More sharing options...
Anna B Posted April 8, 2015 Share Posted April 8, 2015 They don't have to be. People can still buy an annuity and give that responsibility to someone else and get an income in return. With annuity markets at record low levels, thanks to extended life expectancy and Quantative Easing; forcing people to purchase them couldn't remain. It's a step in the right direction for market liberalisation but, like all freedoms, there is always a risk. Life expectancy is a red herring. It's now dropping again. This is all down to quantatitive easing, which has made annuities not worth having. Thanks again bankers... Link to comment Share on other sites More sharing options...
LeMaquis Posted April 8, 2015 Share Posted April 8, 2015 A £20,000 pot would give you less than a £1000 a year, if you have credit card debts of £20,000 then paying that off with all your pot is far better than taking a yearly income. Credit card debts of £20,000? I'd cut the cards up and go for bankruptcy. Link to comment Share on other sites More sharing options...
Solomon1 Posted April 8, 2015 Share Posted April 8, 2015 I just think this is a licence for stupid people. Why would people want to take all or some of their pension money out early. Its taxed anyhow. Why not retire normally like the rest of us and draw on a pension Because it would make more sense to use the money to pay off a mortgage perhaps? Link to comment Share on other sites More sharing options...
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