New State Pension.
Discussion
"About 7m mostly low-paid people who do not currently have any pension savings will automatically have 4 per cent of their earnings docked after April, 2012, to fund a new State-sponsored retirement fund proposed today by the Department for Work and Pensions (DWP).
An estimated 1m employers, mostly small businesses, will also be compelled to contribute 3 per cent of payroll to the new fund – which was originally proposed by the last Labour government. Criticism that this amounts to a massive new stealth tax, which will shrink pay packets and add to employers’ costs when many can least afford it, are countered by supporters of the new scheme who point out that the Government will be chipping in 1 per cent of earnings in the form of tax relief."
http://blogs.telegraph.co.uk/finance/ianmcowie/100...
Can't see how this is a good idea, a tiny business isn't going to want the hassle and if your poor and clever you'll opt out and still get the state pension.
If you are really paranoid you might ask where the money is going to be invested. Maybe a state with very dodgy finances will forces everyones pension to be used to buy gilts.
An estimated 1m employers, mostly small businesses, will also be compelled to contribute 3 per cent of payroll to the new fund – which was originally proposed by the last Labour government. Criticism that this amounts to a massive new stealth tax, which will shrink pay packets and add to employers’ costs when many can least afford it, are countered by supporters of the new scheme who point out that the Government will be chipping in 1 per cent of earnings in the form of tax relief."
http://blogs.telegraph.co.uk/finance/ianmcowie/100...
Can't see how this is a good idea, a tiny business isn't going to want the hassle and if your poor and clever you'll opt out and still get the state pension.
If you are really paranoid you might ask where the money is going to be invested. Maybe a state with very dodgy finances will forces everyones pension to be used to buy gilts.
Edited by Fittster on Wednesday 27th October 17:41
Ozzie Osmond said:
supersingle said:
Great idea! We can trust government with our money. What could possibly go wrong?
That's the whole point; this money won't go to the government.As someone said above, NI is in reality just another name for income tax.
Nothing is ring-fenced. This is just more tax. By a more "palateable" name.
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