From City AM Forum:
Compulsory saving
[Re: Brits told: Save six times more for your pension or face poverty, Tuesday]
It's not clear that a compulsory savings scheme would help to solve the pensions crisis in the UK.
Aside from philosophical issues as to whether the government should be able to mandate what individuals do with their money, there are practical problems to address.
In Australia, which introduced such a scheme in 1992, savings were paid out in a lump sum on retirement. But many just accumulated debts throughout their adult lives (anticipating the retirement payout), and ended up no better off in net terms.
Gerald Patterson.
Oh Dear
2 hours ago
11 comments:
Yeah, that's what I would do.
"But many just accumulated debts throughout their adult lives (anticipating the retirement payout), and ended up no better off in net terms."
But the financial industry was a lot better off, having levied administration charges on the pension and interest on the loans, and that's what counts.
I wonder if it would be possible to leverage your state pension by hypothocating it. Probably not. Or how about a private pension , puting the procedes into the pension fund , a positive feedback loop. (humour)
I know I know that I am in this game, but, I have seen this going on in the UK for years. An awful lot of people budget for the PCLS to pay off accummulated debts. It's sort of an 'endowment financed life'.
I spent mine before I even put it into the pot.
Good for them. Nobody can save money as fast as the public sector steal it.
And, id at some point inbetween now, and retirement, your firm goes broke, and you end up on the dole, you will be expected to spend it all before the Bru will give you a single penny.
MIM, it is more or less inevitable that most people will do it.
B, yes, it's a win-win for them.
Din, people have suggested that as well,if the City can find people gullible enough to do something, they will do it.
L, ta for back up.
BQ, well done.
BFOD?
FT, that's another bonus for the means-testers, I suppose.
FWIW as soon as I could crystallise my PCLS I did - and I spend/spent it on motor racing....
Apologies. Re my previous post I need to be more 'on message'..I 'invested' my PCLS in motor racing...
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