tag:blogger.com,1999:blog-1141932539860553199.post4444594410748645021..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Don't worry about the big numbers! Just look at the little numbers!Mark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1141932539860553199.post-62949842384193152042012-05-31T11:45:30.206+01:002012-05-31T11:45:30.206+01:00B, true, a forecast of what actual cash payouts wi...B, true, a forecast of what actual cash payouts will be (net of nominal tax) would also be useful, I'd guess £10 billion a year or something. And seeing as it's a pay-as-you-go scheme, why do we try and pretend otehrwise? The bad news is there are no underlying investments; the good news is, there is no investment risk either and the cash costs are known.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-79822346549776235762012-05-31T10:48:21.730+01:002012-05-31T10:48:21.730+01:00"The most reliable number in the whole accoun..."The most reliable number in the whole accounts is the estimate of the total cost of all future pensions to be paid out, which is £257.7 billion"<br /><br />Yes, but what does that amount to per year? and anyway, given the impossibility of funding all pensions through the returns on a fund, in that there are simply not enough assets to go round*, isn't a good idea for public sector pensions to be paid out of current gov't revenue?<br /><br />*of course, if all UK land was owned by pension funds and we all rented (like in Hong Kong), there probably would be enough assets.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-60397731142117264592012-05-31T09:47:23.986+01:002012-05-31T09:47:23.986+01:00H, yes, that's the general idea.
L, 35% seems...H, yes, that's the general idea.<br /><br />L, 35% seems a tad on the high side, but as you well know, you'd have to set aside 25% or so of your income throughout a 30 - 40 year working life in order to have a 50% final salary pension, and GPs and surgeons, the really expensive 'employees', don't start earning properly until quite late in life.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-10226045705406953432012-05-31T09:42:38.372+01:002012-05-31T09:42:38.372+01:00The latest estimates I had were that the 'empl...The latest estimates I had were that the 'employer' ( i.e. wealth creating taxpayers in private business ) support costs of the NHS scheme were upwards of 35% of salary roll.<br /><br />All final salary schemes are a version of a Ponzi scheme. I can just about tolerate those run by private business for their own staff, but the public sector ones are just that - Ponzi schemes.Lolahttps://www.blogger.com/profile/04586735342675041312noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-38167309271842345502012-05-31T01:08:24.517+01:002012-05-31T01:08:24.517+01:00By the Grauniad commentator's math, the NHS pe...By the Grauniad commentator's math, the NHS pension scheme will never go into the red as long as it keeps raising salaries and employing additional people at a suitable increment. I think I've seen this financial model somewhere before.Hopperhttps://www.blogger.com/profile/13548829473468337487noreply@blogger.com