October Pension scam, auto enrollment

[fatpies]

Apparently from October I have to enroll my employees into a ponzi scheme I mean a pension. Putting in 1% of their pay, and putting in 1% at least myself.

This 1% is going to go up every year. Up to 10%.

Is it me being kind of cynical thinking that this is just another government scam/tax grab? While it doesn't affect me massively as I have few employees and I'm about to go bust as well.....

I can't help think about my pension (don't laugh) A life time ago I was stupid enough to pay into a pension scheme 5 years in my pension pot was worth alot less than I'd put in.

Which pretty much shouted at me PENSIONS ARE A SCAM.


How the hell did this get through government? Or was it banksters who run such scams giving brown envelopes to MPs or something?
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"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"

[Mr.Everready]

Seems to me that basically they're forcing people to put some money away for later years. It's been a real head ache for years that the population is living longer so who pays for it ? The workforce can't, so the only way the help a bit is to force people to do it.
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the undemocratically unelected mod of the Scottish section

[Joncrete Cungle]

The great cynic in me has a suspicion that this enforced 'pension scheme for the plebs' will by hook or by crook be used to buy government debt should a failed auction be on the horizon. Or used to dump long dated non index linked gilts that will get the bejesus inflated out of their 'value' over the next 20 or 30 years. The ones that not even the BoE really wants to buy and the banks, insurance companies and pension funds won't touch with a bargepole.

[Suntan Sid]

No one is being forced into anything, you can opt out and there's bog all your employer can do about it.
Yes, I listen to "Wake up to Money" on my commute, the wonders of forces radio.
If I had my time over again I wouldn't pay a penny into a pension, daylight, fookin' robbery!
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"Everybody needs money, that's why they call it money!"

[mr jamez]

I my old man is a financial advisor, told me not to bother as the returns will be rubbish. May as well just get a savings account.

I wasn't going to anyway, for the same reasons as others have posted; I'm not putting my money in a trough surrounded by snouts.
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NSR 125F > BROS 400 > NC30 > BROS 400 > Trumpet S4 > '97 VFR 750

[swampy]

[Polarbear]

My pension when set up 30 odd years ago sounded brilliant. I was told I would be able to have a lump sum of up to £100000 and a yearly pension of over £30000.

My last statement said it would be worth about £10000 a year with no lump sum.

I might as well have invested in those premium bonds. I would have won more. As it is I have lost a huge amount, fucking financiers and bankers
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Triumph Trophy Launch Edition

[WannaBeDude]

Pensions, what funds and stuff - sent and messed about with - by bankers and wankers ..
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Jogging on, destination living.

[Rogerborg]

I believe that the idea is to get you something that makes you ineligible to receive a means tested State pension.

Never mind the financial arguments though, the demographic reality is that gen X and beyond are fucked nine ways from Sunday. There will be nobody to spoon in the mush at one end and change our adult nappies at the other.

We'll be lucky to retire at 80 and then be plugged into the Matrix battery farm. That's really the best case scenario.
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Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[WannaBeDude]

Bollux, the world spins and the sun shines, all the rest is pr and rats who should not be born.
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Jogging on, destination living.

[fatpies]

[Suntan Sid]

They will never be able to force you to enrol into their pension scheme!
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"Everybody needs money, that's why they call it money!"

[daemonoid]

From the employers point of view I can see how this sucks.

From an employee point of view though it's way better than a savings account - the money gets instantly doubled by the employer, you don't pay tax on it and it doesn't go to a government scheme - it's private.

My last employer had a slightly more generous scheme where it was 4% of my salary and 6% from them. I paid no tax on that and 'contracted out' my state second pension (something that's not allowed now) somehow it's worth over £50k. It's not a massive amount in comparison to what's actually needed for retirement, but it's a nice few quid for almost no loss to me...
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current: ducati monster 750
past: hyosung gt250r, bajaj pulsar 180, hyosung gt 125 comet
@thomasgarrard | www.straitjkt.com | www.racingseven.com

[Suntan Sid]

At least with a savings account you can access the money when you need it, unlike a pension, where the chances are you'll never see all of it.
You can't withdraw it in a lump sum and you are forced to buy an annuity, with all the fees attached.
The tax benefits are neglible and are swallowed up by annual management fees.
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"Everybody needs money, that's why they call it money!"

[daemonoid]

[Suntan Sid]

[daemonoid]

[Suntan Sid]

Should have used the mattres method!

Oop's
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"Everybody needs money, that's why they call it money!"

[daemonoid]

[Suntan Sid]