Conservative Plans to reduce private pension by 25%

[Randy Winkman]

Doesn't this affect private sector pensions too?

[Fittster]

Jasandjules said:

Fittster said:

Thanks Dave, you managed to go one better than Gordon to make my old age harder.

"Millions of people with private sector retirement schemes are likely to see their pensions reduced by as much as 25 per cent after the Government announced plans to change the way they are calculated.

Well Gordon managed to f**k up my private pensions, so I guess the same is now happening to you public sector guys. But realistically, the public sector pension fund was always going to have to be reduced at some stage, it is far, far too expensive.

As I understand it this change applies to the private sector, you are being fked by the Blue tied politician after being fked by the red tied politician.

[markcoznottz]

Jasandjules said:

Fittster said:

Thanks Dave, you managed to go one better than Gordon to make my old age harder.

"Millions of people with private sector retirement schemes are likely to see their pensions reduced by as much as 25 per cent after the Government announced plans to change the way they are calculated.

Well Gordon managed to f**k up my private pensions, so I guess the same is now happening to you public sector guys. But realistically, the public sector pension fund was always going to have to be reduced at some stage, it is far, far too expensive.

Brown-Balls-Whelan-Campbell-Blair chose to do that though (while ensuring they got a fat pension provision), purely to spite tory voters, pretty unpalettable job sorting it out now though.
The bigger picture is definately inflaton, its a nasty little thing, and the impending further quant easing.

Seems america and Uk will both QE soon, lazy way of paying the bills, China will go fking apest, Im sure our creditors will be happy as well. Apparently there is a limit to how much and how fast and to what extent we can inflate our debts away, im sure tonker will be along to fill in.

[Lost_BMW]

bobbylondonuk said:

What does RPI and CPI include? If RPI factors Housing costs..then it is a reasonable assumption that a pensioner will not have that cost at 65. So what is the problem? Commonsense please!! Is it not better for all of us to factor all investments personal or public by the same costing rather than 2 different costing factors?

So what about the effect of energy costs (i.e. not being included when all forecasts suggest this will grow dramatically in the next 10 to 30 years)? More pensioners freezing to death perhaps?

[markcoznottz]

Lost_BMW said:

bobbylondonuk said:

What does RPI and CPI include? If RPI factors Housing costs..then it is a reasonable assumption that a pensioner will not have that cost at 65. So what is the problem? Commonsense please!! Is it not better for all of us to factor all investments personal or public by the same costing rather than 2 different costing factors?

So what about the effect of energy costs (i.e. not being included when all forecasts suggest this will grow dramatically in the next 10 to 30 years)? More pensioners freezing to death perhaps?

Big problems ahead my friend!. Inflation is the devils work, you have to earn more just to stand still, let alone improve your lot. We should be very angry.

[Jasandjules]

Fittster said:

As I understand it this change applies to the private sector, you are being fked by the Blue tied politician after being fked by the red tied politician.

Ah f**k it. That's not so good.

[Lost_BMW]

markcoznottz said:

Lost_BMW said:

bobbylondonuk said:

What does RPI and CPI include? If RPI factors Housing costs..then it is a reasonable assumption that a pensioner will not have that cost at 65. So what is the problem? Commonsense please!! Is it not better for all of us to factor all investments personal or public by the same costing rather than 2 different costing factors?

So what about the effect of energy costs (i.e. not being included when all forecasts suggest this will grow dramatically in the next 10 to 30 years)? More pensioners freezing to death perhaps?

Big problems ahead my friend!. Inflation is the devils work, you have to earn more just to stand still, let alone improve your lot. We should be very angry.

Seriously I am, and stting it about my long term future, that in 3 years has gone from looking rosy to probably rancid.

[Fittster]

In the Daily Mail now so it must be true:

"Plans to shake up final salary pension schemes will cut payouts by up to 25 per cent, it has been claimed.
Financial experts warn that the coalition government’s decision to change the way benefits are calculated will prove a ‘nightmare for millions’.

Under the coalition’s proposals - which are being imposed without consultation - pension scheme payments would no longer have to keep pace with the Retail Prices Index.

Instead firms would be allowed to use the Consumer Prices Index, which is usually lower.
Dawid Konotey-Ahulu, of the Mallowstreet group, said: ‘Pensions linked to CPI will be lower over time – some estimates put the drop as high as 25 per cent.’

The group, whose members include 200 pension funds managing £500 billion in assets, said the Government should hold a full consultation before the changes are introduced next year. It has written to Work and Pensions Secretary Iain Duncan Smith demanding a rethink

http://www.dailymail.co.uk/news/article-1301941/Mi...