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State Pension delay to age 70 for under 30's?



soistes

Well-known member
Sep 12, 2012
2,643
Brighton
I'll respond to your second point.

I was (am?) a member of the Local Government Pension Scheme That was a contributory scheme that required both the employee and the employer to make contributions towards the cost of pensions. As an employee, I had no choice and I paid into the fund every month. But the employer (in my case East Sussex County Council) did have a choice. They were responsible for managing their particular bit of the fund (called the East Sussex Pension Fund). The way they did this was to employ investment advisors who were required only to ensure that there was enough money in the fund to pay out the short-term amounts that were needed to pay the current recipients of a pension.

What this meant, in practice, was that the employer was advised that there was no need to top up the fund with employer's contributions. In fact, not making those contributions could be a way of keeping council tax down. And that's what ESCC (and all other local government employers did). They called it "complying with the regulations".

Guess what? Over the years, it became obvious to everyone involved that, in the long term, this was an arrangement that wasn't sustainable. Despite pressure to make appropriate contributions, the employers effectively spent their money on other things. Not unlike Robert Maxwell, as it happens. But, unlike Maxwell, they got away with it.

Now we are told that the taxpayer can't afford to keep public sector pensions at their earlier level. So the party is over - and, astonishingly, everyone is blaming the employees.

All of this was avoidable, if the government (who made the regulations) had, in fact, required the employers actually to make their contributions to the pension fund.

Don't disagree with any of that. All I was saying is that schemes like that, public sector funded schemes, were partly paid for out of taxation through employer contributions. You're clearly correct that some public sector employers (and many, many more private sector employers - Maxwell and Philip Green are just the tip of the iceberg) took contribution 'holidays' on the basis of what turned out to be very unreliable estimates of the long-term value of the funds. That was a scandal, should not have been allowed to happen, and should never be allowed to happen again (see my separate post arguing for tighter regulation of pension schemes, public and private). That doesn't refute my original point that the ESCC pension schemes and similar ones are at least partly funded by taxation through employer contributions (even if there was a period when the employer was able to renege on those contributions).
 


The_Viper

Well-known member
Oct 10, 2010
4,345
Charlotte, NC
Large scale automation over the next 20 years or so is going to change our working society so much I can see pensions being a very out of date device, imo like.
 


Thunder Bolt

Ordinary Supporter
My private pension went up by £7 this month. Yesterday I received the council tax bill which I pay by monthly direct debit. It has gone up by..............................................£7 a month.
 


beorhthelm

A. Virgo, Football Genius
Jul 21, 2003
35,264
...5) Even many bright young people who do understand the maths still don't do anything until it's too late, and for all sorts of familiar reasons value the money in their pocket today over what they will need in their old age. I despair at young colleagues, many with PhD's, who decide not to join our company pension scheme (which in these times is fairly generous - a multi-employer, career average, defined benefit scheme into which the employer pays 18% of salary, and the employee pays 8% and gets tax relief on that), because they 'can't afford' the 8%. They could never match a deal like that elsewhere, but they still don't do it.

to be fair, 8% is steep for younger employees to be have to pay in, when so many other items and priorities are on their mind. my company's pension asks you put in 2% 20-30, then increases 2% for each decade and you can adjust each year if you have a "life event" (say a baby). 2% isnt missed much. company pays same +3% on top, which is nice. that flexibility leads to very high up take.
 


nicko31

Well-known member
Jan 7, 2010
17,522
Gods country fortnightly
The boomers move the goal posts again for younger generations! The sooner they die out the better for all humanity.

They're be draining the system for a while
 






Pavilionaire

Well-known member
Jul 7, 2003
30,521
People may be living longer, but it is unrealistic to expect manual workers to continue into their 70s and just think how much sick pay there will be for those 65-70 years old if the retirement age is raised to 70.

Auto-enrolment is an excellent idea, but they should have introduced it decades ago.
 


Giraffe

VERY part time moderator
Helpful Moderator
NSC Patreon
Aug 8, 2005
26,451
I always think this graph is a startling reminder of what the world faces now and in the future. A MASSIVE increase in population, and most of them now want to live in a very small part of it.
 

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Albumen

Don't wait for me!
Jan 19, 2010
11,495
Brighton - In your face
I always think this graph is a startling reminder of what the world faces now and in the future. A MASSIVE increase in population, and most of them now want to live in a very small part of it.

That's not a great way of looking at that graph.
This one (UN figures) shows WHERE the population growth will live. Europe is pretty consistent.
world-population-projections-by-continent.png
 


Giraffe

VERY part time moderator
Helpful Moderator
NSC Patreon
Aug 8, 2005
26,451
That's not a great way of looking at that graph.
This one (UN figures) shows WHERE the population growth will live. Europe is pretty consistent.
world-population-projections-by-continent.png

That looks like a very Western based view of the world. If the populations of the Asia and Africa increase by that quantum it is only natural to expect movement to Europe.
 






Guy Fawkes

The voice of treason
Sep 29, 2007
8,187
Can see this happening

http://www.bbc.co.uk/news/business-39352654

I'd like to see proper reform of public sector pensions, urgently needed and completely unaffordable to the public purse

We as a country want things like a free at the point of use health service and therefore things like this are the trade off for the country to be able to afford to have these desired services

We have kept deferring this issue rather than tackling our ever growing national debt and what we are starting to see with things like this is the future / later generations having to pay for our current public spending habits

You cant have your cake and eat it but some seem to think that this is (politically at least) possible and their solution to ever growing debt is to ignore it and borrow more (the sort of 'we have dug ourselves into a deep hole so the way out is to keep digging' approach & then to blame those who are trying to tackle this debt for societies woes and paint them as evil and uncaring - it's either now or later and those who claim they are uncaring for trying to tackle it have no real interest in looking out for the later, it's just about what they can get for themselves now)
 










Super Steve Earle

Well-known member
Feb 23, 2009
8,313
North of Brighton
Think the young are really getting screwed. They need to get out there and start voting, perhaps then the government would stop pandering to the Daily Mail reading pensions

If the young read MoneyMail, perhaps some would plan for the future and contribute to pensions, rather than waiting for the government to bail them out!
 


Mellor 3 Ward 4

Well-known member
Jul 27, 2004
9,754
saaf of the water
My public sector pension was paid for by my monthly contributions and by the fact that my pay level was lower than what I might have earned in the private sector.

State pensions are paid for out of general taxation.

Unlike some on here I think I can see this from both sides. My wife works in the Public Sector whilst I work in the private sector.

soistes has already addressed your post better than I would have done, but I'd just add a couple of points:

Salaries in the public sector have now reached the same levels as those in the private sector.

Pensions in the public sector are paid for by both the employee contributions and the employer, i.e. the taxpayer.

Whilst this shouldn't be a race to the bottom, with an ageing population the facts are that public sector pensions at their current levels are unsustainable.

Auto enrolment is a great idea, but the figures are too low and it should have happened 20 years ago.
 


DIFFBROOK

Really Up the Junction
Feb 3, 2005
2,266
Yorkshire









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