[url= http://www.theguardian.com/money/2014/jan/22/pensions-opt-out-scrapped-thinktank ]http://www.theguardian.com/money/2014/jan/22/pensions-opt-out-scrapped-thinktank[/url]
Hmm, compulsory pensions for all workers, I know, maybe the state could take control and ensure the fees aren't too bad, that the money is invested, I know we could call it National Insurance....
How things go round in circles....
The scheme has already been implemented. I think that that think tank (wow that was a load of t's!) are suggesting it's not enough, that the minimum contribution is way too low and people shouldn't be able to opt out (although a surprisingly low number are)
@mrmo this is fundamentally different from national insurance as you are saving for your own pension whereas with national you are paying for today's retired people in the hope that in the future someone willard for you. Charges are to be capped (Lord Lawson was speaking about a cap of 0.75% to 1% per anum). It think one of the benefits of this scheme is that it will focus the average person's mind in how much money you just save for retirement and by reference the future cost to the nation of tomorrows retirees and whether the current system is practical or affordable.
If I suggested a scheme where people pay me for a pension. I then spend that money and pay them with the money other people give me later, I would be sent to jail. Its a Ponzi scheme !!!
[i] I know, maybe the state could take control and ensure the fees aren't too bad, that the money is invested, I know we could call it National Insurance....[/i]
I know, maybe individuals could realise that they should not assume that their own future financial well being is someone else's problem and they should make some effort to plan for it, I know we could call it personal responsibility.
I know, maybe individuals could realise that they should not assume that their own future financial well being is someone else's problem and they should make some effort to plan for it, I know we could call it personal responsibility.
Then maybe we should scrap government benefits and rely on private insurance for everything.
I have no issue with private pensions, but the moment you make it compulsory, and unless you put in strong safe guards you will find a lot of people ripped off by "management" fees.
I am well aware that the current pension system is a Ponzi scheme and I am still waiting for the government to announce their plans. Raising the pension age only does so much, it doesn't cover the whole gap.
there's also the issue of people [i]already[/i] in a company pension scheme automatically being enrolled into this one [i]as well[/i]. some people will object "I'm already in a pension scheme, why do I need to be in another?"