Gordon Brown Saves The World

[Old Greg]

I don't think either taxes or interest rates are that high. Interest rates have been low for the 2 years or more until quite recently, and when I was a kid (during the Thatcher era) weren't they at 10-15%? And Scandinavian countries have much higher taxes I thought?

Scandinavian countries tend to have decent public services for their taxes, rather than expensive government IT projects (ahem.)

[Bob Dalek]

Scandinavian countries tend to have decent public services for their taxes, rather than expensive government IT projects (ahem.)

I thought suicides balanced the books?

[expat]

How you can say that it's ok to raid people's pensions because admin fees are high beggars belief... that is an argument NOT to tax them so highly.

People will be very poor in old age thanks to GB, except for public sector workers who are heavily subsidised by those very poor. The private sector already have to work five years more than those in the public sector. That is scandalous.

Annuities have been getting worse for years because of increased longevity. You didn't know this ?

You're so out of touch Expat.

OK I know I shouldn't feed it, but:

I dod NOT say it's "OK to raid people's pensions" because admin fees are high. What I did say is that it was not Brown's tax change that shredded your pension. Whether it was right or wrong, it was not actually significant compared to other effects.

I know that annuities "get worse" because of increased longevity: I was not talking about this continuous foreseeable trend, but about the extrame variability that can mean that you will get less at some random times than at others.

I am not out of touch, you are failing to read.

[Stan.goodvibes]

You are Threaded and I claim my 5 Krugerrands!

Que?

[Cyberman]

OK I know I shouldn't feed it, but:

I dod NOT say it's "OK to raid people's pensions" because admin fees are high. What I did say is that it was not Brown's tax change that shredded your pension. Whether it was right or wrong, it was not actually significant compared to other effects.

I know that annuities "get worse" because of increased longevity: I was not talking about this continuous foreseeable trend, but about the extrame variability that can mean that you will get less at some random times than at others.

I am not out of touch, you are failing to read.

Absolutely laughable!! Brown has take out 5 Billion every year since 1997, and compounded, that is over 100 Billion pounds. That is slightly more than administration fees would be, especially if you have a low cost SIPP.

[Stan.goodvibes]

Unfortunately it appears that govts the world over fell into the same trap that bankers and individuals did, in thinking that the good times will roll on forever. Like us they should have balanced their budgets and 'saved' some money away for a rainy day, instead of running up huge deficits.

I haven't been putting money away for a pension (yet) and I have no expectation of tge govt having any money to pay me even a minimum pension in retirement.

But then again I have no desire or expectation to 'retire' at 65 and play golf until I die. The entire concept of 'retirement' is fast becoming outdated and impractical.

The concept of having a retirement nest egg that is tied to the sharemarket always seemed pretty risky to me

[ace00]

But then again I have no desire or expectation to 'retire' at 65 and play golf until I die. ........

Me neither. I don't like golf and want to retire at about 45.

[AlfredJPruffock]

Unfortunately it appears that govts the world over fell into the same trap that bankers and individuals did, in thinking that the good times will roll on forever. Like us they should have balanced their budgets and 'saved' some money away for a rainy day, instead of running up huge deficits.

I haven't been putting money away for a pension (yet) and I have no expectation of tge govt having any money to pay me even a minimum pension in retirement.

But then again I have no desire or expectation to 'retire' at 65 and play golf until I die. The entire concept of 'retirement' is fast becoming outdated and impractical.

The concept of having a retirement nest egg that is tied to the sharemarket always seemed pretty risky to me

Good for you - I share your views completely.

The whole idea of 'retirement' to me is a non-sense - in fact have you noticed how many people die shortly after 'retirement' - it appears as is nature sees that you are doing nothing in the World then it takes you out to let new life progress.

As for pensions - utter hogwash - your best bet is to have a high interest savings account, perhaps a wee hoose that is yours, not the banks - and keep on working!



I was digging in the yard today
When a letter came from Southampton way
Keep on working
Keep on working
I must admit I was a bit in the red
But if you never have pleasure then you could be dead

Keep on working
Keep on working

But there's on thing
They can't take away
Hear the sea sing
See a smiling face
I think we're OK
Though we all could be mad
That's what they say
We just can't all be bad

I got something now to think about
I'll work all day but not to pay it out
Keep on working
Keep on working
Don't care if they say where a dying race
I'd rather be here than any other place
Keep on working
Keep on working

And there's another whirl
They can't ever touch
Just need a boy and girl
It don't cost you much
And if your luck is in
you might have kids at play
To make you laugh and sing
When you're old and gray

[ASB]

Absolutely laughable!! Brown has take out 5 Billion every year since 1997, and compounded, that is over 100 Billion pounds. That is slightly more than administration fees would be, especially if you have a low cost SIPP.

Laughable ? yes your comment is.

The raid comprised of removing tax relief on dividends. Now given an invented (but reasonably accurate) average equity yield of 4% this is going to reduce the overall yield on said investment by 0.8%. It would actually be quite a cheap fund that had a total expense ratio any where near this low. Granted you could probably keep it to this in a SIPP.

However that not to say the effect of this is not significant. In simple figures 100k invested to yield 6% over 30 years will produce 575k, the same @ 6.8% will produce 720k thus it will result in a pension about 20% lower.