Wages down 2% from April - pension

[Calahonda]

Private pension provision had never been anywhere close to perfect, I personally like the idea of a NI (Not in pensionable employment) band, that would not be subject to the fluctuations of world stock markets. This has been attempted in various guises, but never solely for people who are not in pensionable employment however, this needs paying for, Vince Cable was charged to come up with a plan during the Tory/Lib Dem coalition administration, I personally consider his expertise in this area to be a figment of his imagination.

[willman]

The majority of very low paid workers auto-enrolled into this scheme assume that they will see a significant boost to their income in retirement. This will certainly not be the case. I've heard stories of people on the minimum wage believing their pension will be worth £160,000 when they come to retire! These figures have been based on people earning way above average income, and contributing far more than 8 per cent of their earnings. Not those on £12,000 per year contributing 3 per cent.

 

Inflation will reduce whatever the poor can save to even less of very little. Time to tax the rich.

 

Thats their problem for believing it or should i say not taking appropriate advice.

Take the money your employer pays in to it and make do with that.

Thats a pay rise of 3% at least.

You can opt out - as has always been the case BUT your employer can no longer opt out of providing one,that's the winner for employees.

[bendix]

Millions of workers face a "harsh jolt" to their incomes this month, as the amount they have to pay into their pensions triples in value. Your minimum pension contribution will go from 1% to 3%; its just like increasing taxes. Your pay will be 2% lighter.

 

This will surely be a harsh jolt to the entire economy?

 

 

Utter tosh. It is not like increasing taxes.

 

It is designed to make people do what adults are meant to do - take some responsibility for their retirement. It is not a tax, because you will get it back. And it is completely possible to opt out of it you want to be a child and avoid it. Governments around the world are increasingly having to introduce such schemes because sadly adults today prefer to live with their head in the sand and not plan for the future.

 

We are a generation of children.

[willman]

This month, more than two million people on the National Minimum Wage will see their pay rise by up to 5.3% - why not use that to pay the extra 2%.

[Car Boot]

Utter tosh. It is not like increasing taxes.

 

It is designed to make people do what adults are meant to do - take some responsibility for their retirement. It is not a tax, because you will get it back. And it is completely possible to opt out of it you want to be a child and avoid it. Governments around the world are increasingly having to introduce such schemes because sadly adults today prefer to live with their head in the sand and not plan for the future.

 

We are a generation of children.

 

Those on low incomes cannot afford to contribute to this increasingly expensive scheme. Not everyone is on average earnings or above. The returns the very low paid will get in retirement will be tiny.

 

---------- Post added 06-04-2018 at 15:11 ----------

 

This month, more than two million people on the National Minimum Wage will see their pay rise by up to 5.3% - why not use that to pay the extra 2%.

 

Why not reduce the much needed pay rise the low paid are getting with the National Living Wage so that pension providers can make even more money?

[bendix]

Those on low incomes cannot afford to contribute to this increasingly expensive scheme. Not everyone is on average earnings or above. The returns the very low paid will get in retirement will be tiny.

 

Which is why the state pension is being simplified.

 

The state pension is there as a safety net; 'strongly encouraging' individuals to save for their old age to have a better standard of living is EXACTLY the right thing to do when we can't rely on adults being responsible enough to do it themselves.

 

And if their overseas holidays and iphones and smoking habit means they genuinely can't afford it, employers are not obligated to contribute also - they get no opt-out option.

 

How anyone can see this as a bad thing is beyond me.

 

---------- Post added 06-04-2018 at 15:14 ----------

 

The returns the very low paid will get in retirement will be tinyQUOTE]

 

 

 

The returns the very low paid will get in retirement will be directly related to two things: the amount they put in, and the performance of whatever asset class their money was invested in, minus fees.

 

Either way, it will be much better than the NOTHING they will get if they are not 'encouraged' to save for the future.

[vwkittie]

Animal lover kittie?

 

Oh! haha yes

 

---------- Post added 06-04-2018 at 16:49 ----------

 

Utter tosh. It is not like increasing taxes.

 

It is designed to make people do what adults are meant to do - take some responsibility for their retirement. It is not a tax, because you will get it back. And it is completely possible to opt out of it you want to be a child and avoid it. Governments around the world are increasingly having to introduce such schemes because sadly adults today prefer to live with their head in the sand and not plan for the future.

 

We are a generation of children.

 

It's also due to the increasing numbers of retired people compared to workers - smaller families and a longer life expectancy. Something has to give somewhere.

[Cyclone]

Millions of workers face a "harsh jolt" to their incomes this month, as the amount they have to pay into their pensions triples in value. Your minimum pension contribution will go from 1% to 3%; its just like increasing taxes. Your pay will be 2% lighter.

 

This will surely be a harsh jolt to the entire economy?

 

It won't be 2% lighter though, as it's gross pay that goes down 2%, it comes out of taxed pay first, so it should be <2% for most people.

[ALAN 58]

Who gets the money if you don,t reach pensionable age?

[Cyclone]

Those on low incomes cannot afford to contribute to this increasingly expensive scheme. Not everyone is on average earnings or above. The returns the very low paid will get in retirement will be tiny.

 

So you're arguing that what? People can opt out, and then live on just the state pension alone when they retire (if that still exists at that point).

Is that what you want people to do?

 

---------- Post added 06-04-2018 at 17:20 ----------

 

Who gets the money if you don,t reach pensionable age?

 

Whoever you will it to, just like any other asset you leave.