[Finance] Tory's risking our pensions to try and prop up failing UK economy?

[Shropshire Seagull]

Afraid not. I grew up in Thatcher’s Britain.

So were you a voter in the Gordon Brown era?

What a king-sized CJTC he was, especially around Tax Credits - I was part of the IT team that delivered that dog's breakfast he dreamed up - bloke should be tried for treason the amount of tax-payer dosh he spunked on that.

 

[jakarta]

Living in the past?

I assume you are living in 2011 at the moment

Apologies to all the smart arses, my Main Pension Pot will kick in when I want it to but expect it will be 2023 or 2024.

The main point, which hasn't yet been answered, is why a Pension Plan that has been slowly accumulating over the last 20 years (something I fully expected and wasn't fussed about in my 40's and 50's as retirement was on the distant horizon) has skyrocketed in the past 3 years when we have been told the worlds economy was in meltdown?

Shirley shome mishtake?

 

[East Staffs Gull]

It certainly was Gordon Brown who is at the core of this Pension crisis

Sent from my EML-L09 using Tapatalk

Pensions were sacrosanct until 1993, when Norman Lamont cut pension funds’ tax credit on UK dividends from 25% to 20%. Brown subsequently went the whole hog and removed the credit completely.

 

[Shropshire Seagull]

This is not intended to be a look at me, "I'm alright Jack" message so aplogies in advance if it comes across that way.

Maybe I'm one of the lucky ones, although I don't see it as lucky, more prudent.
My State pension starts in 4 years time - I don't know which political party instigated it but I sleep well in the knowledge of the triple-lock - how that is funded, be it bonds, investment or taxation, I'm unbothered. That money will be coming to me and I've earned it.

I also have two deferred final salary pensions - maybe I was lucky I found two jobs that operated such schemes, but I'd like to think it wasn't just luck - having left a comprehensive school at 16 with 3 o-levels I woke up and smelt the coffee at 27 - got a degree [graduated at 32] as a mature student - and doors [decent jobs] opened. Again, I don't give a monkeys where they invest their money, my return is guaranteed [protected] and inflation indexed too.

For the last 15 years I've been semi-retired - as an IT contractor I've worked for about 8 of them. Contracting is high-risk, high-reward and I've managed to generate a decent pot for me and Mrs SS in a SIPP each - now, this I only have an element of control over investment risk and trust my fund manager to do right by me - all I can hope is that they hold me [as their paying customer] in mind when investing my dosh. They have offered me NINE levels of investment risk - I opted for number 5 [Mr Fence] which is giving me about 7% annually - Covid not withstanding. I hope they ignore any Government advice to go fast and loose with my investment funds.

So, should I worry about Government [of any denomination] asking investors to take more risk - maybe, but as all my eggs are not in one basket. I feel a bit Meh! is that wrong?

 

[nwgull]

Apologies to all the smart arses, my Main Pension Pot will kick in when I want it to but expect it will be 2023 or 2024.

The main point, which hasn't yet been answered, is why a Pension Plan that has been slowly accumulating over the last 20 years (something I fully expected and wasn't fussed about in my 40's and 50's as retirement was on the distant horizon) has skyrocketed in the past 3 years when we have been told the worlds economy was in meltdown?

Shirley shome mishtake?

I answered it, and it’s that the world’s economy isn’t on a meltdown. Your pension fund that has done so well in last 3 years is probably heavily invested in US stocks (and other non-U.K.). Three main indeces there: DJ has gained 40% in that time, Nasdaq has more than doubled, S&P500 has almost doubled.

 

[Bob!]

This is not intended to be a look at me, "I'm alright Jack" message so aplogies in advance if it comes across that way.

Maybe I'm one of the lucky ones, although I don't see it as lucky, more prudent.
My State pension starts in 4 years time - I don't know which political party instigated it but I sleep well in the knowledge of the triple-lock - how that is funded, be it bonds, investment or taxation, I'm unbothered. That money will be coming to me and I've earned it.

I also have two deferred final salary pensions - maybe I was lucky I found two jobs that operated such schemes, but I'd like to think it wasn't just luck - having left a comprehensive school at 16 with 3 o-levels I woke up and smelt the coffee at 27 - got a degree [graduated at 32] as a mature student - and doors [decent jobs] opened. Again, I don't give a monkeys where they invest their money, my return is guaranteed [protected] and inflation indexed too.

For the last 15 years I've been semi-retired - as an IT contractor I've worked for about 8 of them. Contracting is high-risk, high-reward and I've managed to generate a decent pot for me and Mrs SS in a SIPP each - now, this I only have an element of control over investment risk and trust my fund manager to do right by me - all I can hope is that they hold me [as their paying customer] in mind when investing my dosh. They have offered me NINE levels of investment risk - I opted for number 5 [Mr Fence] which is giving me about 7% annually - Covid not withstanding. I hope they ignore any Government advice to go fast and loose with my investment funds.

So, should I worry about Government [of any denomination] asking investors to take more risk - maybe, but as all my eggs are not in one basket. I feel a bit Meh! is that wrong?

Mr Sunak wants to lose the triple lock before the next review, alledgedly.

 

[The Clamp]

So were you a voter in the Gordon Brown era?

What a king-sized CJTC he was, especially around Tax Credits - I was part of the IT team that delivered that dog's breakfast he dreamed up - bloke should be tried for treason the amount of tax-payer dosh he spunked on that.

You’ll get no argument here, he ****ed a lot up. I don’t believe he had the same level of wilful disregard for the people of Britain that Johnson does though and I don’t believe he was as bad at his job as Johnson is, or as much of a liar, or as much of a cheater, profiteer, cronyist, populist, racist etc etc

Two very different people.

 

[Eric the meek]

Johnson and Sunak urge UK pensions to back riskier investments
PM and chancellor aiming to ignite ‘investment big bang’ to fuel post-pandemic economic recovery

https://www.theguardian.com/busines...-urge-uk-pensions-to-back-riskier-investments

Should this be a worry? Or is it a good idea? Another negative impact of Brexit being hidden behind "covid recovery"

Phrases like "Backing Britain's entrepreneurial spirit" worry me coming from Boris Johnson. I do not want to be an entrepreneur. I want a steady pension at the end of this shit-fest.
I don't know about you, but when the Tory's start talking about what to do with my money, alarm bells start ringing.

I don't think this is anywhere as near as bad as you are trying to make out.

All I see is Boris and Sunak trying to persuade pension fund managers to increase the percentage of their funds that is invested in UK infrastructure. What's the problem?

The key point for those with DB and DC pensions, is that any investment choice is just that. A matter of choice. Not compulsory. If you feel strongly against investing in UK infrastructure, then don't invest in it. There is a myriad of other options in the investment universe.

 

[raymondo]

Here is a novel approach they could try.

Get the environment agency to actually do their job and force the corrupt water companies to clean up their mess.

This will put pressure on fat cat salaries and on dividends. This then breaks the vicious circle where we all get shafted by a corrupt bunch of monopolies, which the government won't touch in case it impacts everyone's pension.
Net result pension funds have to work a little harder and need to look to more innovative companies to fund pensions growth.

They could of course just bring them back into public ownership. I don't really care which way it goes, but I am sick of hearing about the shit these corrupt b'stards are literally pouring into our rivers and seas every time it rains, or in the case of Southern Water every time they deny it.

Spot on - the Water companies see these fines as a small business expense, cheaper than doing their jobs properly. Putting the top management in court might change their attitudes.

 

[The Clamp]

I don't think this is anywhere as near as bad as you are trying to make out.

All I see is Boris and Sunak trying to persuade pension fund managers to increase the percentage of their funds that is invested in UK infrastructure. What's the problem?

The key point for those with DB and DC pensions, is that any investment choice is just that. A matter of choice. Not compulsory. If you feel strongly against investing in UK infrastructure, then don't invest in it. There is a myriad of other options in the investment universe.

I was asking questions really. It’s true I do not trust this government but I did ask, is this something to be worried about.
Im not sure investing in U.K. infrastructure is a good idea seeing as projects such as HS2 are unwanted money-pits. As you say, I can invest in other areas but as long as have a works pension I don’t have a say in how my pension is invested. I’m pretty sure I don’t have a say.

 

[Rugrat]

Looking at Pension No.2 (Royal London) Statements it has definitely rocketed which doesn't seem logical given what has been happening in the last couple of years?

If (as you say) you've been contributing and it's invested in a broad basket of global funds you couldn't have failed in the past 2 years.

If you're up much less than 25% (excluding what you've put in) I'd be surprised

Markets are crazy imo, fundamentals seem to have been set aside and there's just a lot of cash looking for a place to sit

 

[PILTDOWN MAN]

I was asking questions really. It’s true I do not trust this government but I did ask, is this something to be worried about.
Im not sure investing in U.K. infrastructure is a good idea seeing as projects such as HS2 are unwanted money-pits. As you say, I can invest in other areas but as long as have a works pension I don’t have a say in how my pension is invested. I’m pretty sure I don’t have a say.

Your works pension doesn't allow to invest your money where you want?

Last two companies I've worked for I have full control of my pension.

 

[El Presidente]

If this means that The Prudential are going to buy Jurgen Locadia for £20m as a risky investment then I'm Backing Boris until I'm balls deep.

 

[The Clamp]

Your works pension doesn't allow to invest your money where you want?

Last two companies I've worked for I have full control of my pension.

I’ll look into it. Cheers.

 

[Shropshire Seagull]

Mr Sunak wants to lose the triple lock before the next review, alledgedly.

Yes, I heard that - but to put into context, it was only a "suspension" this year because of the 2021 wages inflation index bouncing back from a negative in 2020 [due to Covid]. Annual earnings growth was running at 5.6% in the three months to April and is on a rising trend. If the government decides to leave the pledge in place, pensions will be uprated using the earnings figure for July [i.e big bonus for pensioners]. I'd be okay with 2.5% this once ....

For info [just looked it up]: “Triple-lock introduction was announced by the Coalition Government in its first Budget after the 2010 election.” - and was a Conservative manifesto pledge

 

[jakarta]

I answered it, and it’s that the world’s economy isn’t on a meltdown. Your pension fund that has done so well in last 3 years is probably heavily invested in US stocks (and other non-U.K.). Three main indeces there: DJ has gained 40% in that time, Nasdaq has more than doubled, S&P500 has almost doubled.

Many thanks for the answer, which makes sense in one way and of course is total nonsense as well.

Happily mortgage is paid and Mrs Jakarta has a Head Teachers pension so we could pull up the drawbridge tomorrow but always worth looking a bit down the road...

 

[Eric the meek]

I was asking questions really. It’s true I do not trust this government but I did ask, is this something to be worried about.
Im not sure investing in U.K. infrastructure is a good idea seeing as projects such as HS2 are unwanted money-pits. As you say, I can invest in other areas but as long as have a works pension I don’t have a say in how my pension is invested. I’m pretty sure I don’t have a say.

You don't know if you have a say?? I can think of many answers to that, but the kindest is 'go and find out'. Make it your business to know. It's your money. Nobody cares about it like you do. You obviously care deeply about it, hence this thread !

I'm guessing that you therefore don't know where it is invested. Find this out as well. Does it meet your criteria in terms of risk, growth, income, 'greenness' etc?

Imagine reaching retirement, and being disappointed with what it provides you with. You will have nobody to blame but yourself. You outsourced it to someone because it was expedient, but the outcome will be a result you cannot reverse.

In 2010, I gathered up several DC pensions and put them all in a Self Invested Personal Pension. It was a best decision I ever made. I manage it all myself, and I take full responsibility for all my investment decisions, successes and failures.

If you had had your own SIPP, you would not have been so angry as you wouldn't have been so powerless over where your pension was invested. You probably wouldn't have even written this thread......

 

[nwgull]

Many thanks for the answer, which makes sense in one way and of course is total nonsense as well.

Happily mortgage is paid and Mrs Jakarta has a Head Teachers pension so we could pull up the drawbridge tomorrow but always worth looking a bit down the road...

Which bit is nonsense?

 

[Wardy's twin]

You weren't around when Sunny Jim Callaghan and the TUC were running/ruining the Country then?

I was and they were inept with a touch of corruption from the unions.

The current government is totally corrupt and mainly inept which I think trumps Sunny Jim big time. The corruption continues to get worse.

 

[Rugrat]

I don’t have a say in how my pension is invested. I’m pretty sure I don’t have a say.

You won't have a say in who the pension administrators are but you will (or should, within a range) be able to chose where your £'s are invested.

If you don't specify they will invest fairly conservatively and then the nearer you get to retirement they will shift the mix further and further from equities. All done to protect your pot but you absolutely miss out on a ton of upside opportunity imo