Thanks so much for watching PART ONE and thanks again to Sir Steve Webb for his time. 🙏 PART TWO: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-6N-AasjeqF0.html
"Pension liabilities do not represent debt in that they do not constitute previous borrowing which has to be serviced or ultimately repaid" This is the ONS on why they view the pensions as not being debt. They state its not a debt because we aren't going to pay the pensions. Now that statement is true. They won't pay. So why not ask Webb about that part of the government's plan? Take the money and run. Ask him for the size of the debts. If he doesn't know, then why is he spending the money?
Fascinating video, I was in the armed forces for 41 years, I had no idea that I had been contracted out, whilst I understood why, it would have been good to have been told.
Hi.. my husband died.. Oct 31 2021.. were legally married here in phil.. and bfr we get married we go British embassy.. and submit docs.. that were getting married.. Tel we received inpedent frm Brit embassy so we get Jan 21 2014.. Almost 8 yrs.. My husband died here in phil burried here. My question is can I get pension as a wife? How I'm here in.. Philippines I email British embassy mnla but no reply.. pls help and need advise thanks god bless
Interesting discussion. However, I retired just after 2016 and no chance to burn off as mentioned not fair for many. Also GMP's ceased to receive inflation increases although promised unless you have a powerful union behind you as NHS and other public sector workers have. Can you ask your guest back to explain why a few people who retired shortly after 2016 have been unfairly treated?
The only inflation-linked increases, are/were for those working for government sectors/departments ... although that doesn't/didn't preclude private sector employers from so doing!
In Australia employer’s have to pay 9.5% of your wages into a pension scheme on top of your wage, even the lowest paid on minimum wage and it’s increasing over the next few years. None of this having to pay out of your net pay.
Great informative video…. Can I ask regarding Opting Out….how I understand it; the increase in your private pension should be about the same as the decrease in your state pension (to make it equal); so if in 2016 this flat deduction but if you kept working for another 10yrs would mean you’d get the full state pension, you’d still get the increase in your private pension from opting out years early; therefore aren’t you now better off than you would of been if you hadn’t opted out because you’re getting the full state pension and your increase private pension…..?
That is the intent. It was widely sold, in the early 90s, as a big pension boost. In practice, returns have not been as forecast (surprise!). In my own case, I would have been better off not to have contracted out. This is probably not the case for defined benefit schemes- they should be worthwhile. But they are rare these days...
No is the answer if like me you only had six years till retirement , note the extra year added to retirement date, and then the rules were changed you wouldn’t have the years remaining to make up the contracted out years so you wouldn’t qualify for the full state pension even though you could’ve been paying NI for 50 years, So thanks a lot effing Tories
Hi Edmund Great interesting video, I think everyone needs to understand how the State Pension works, many of my friends have no idea or are confused, just for interest my wife worked for the NHS for 22 total years & will lose over £30/week from State Pension, she retired early in 2016 so can’t add further years, she is also in the first year that’s age 67 for state pension, having worked for 30 years thinking she would be eligible for a pension at 60, so the changes to the State Pension do seem rather biased against her. not that she’s complaining she wouldn’t have been able to consider early retirement without the NHS pension.
@@Nickle314 I have done the sums, and I certainly would not. In fact, I did that partly- took the 2% when offered- and the returns are substantially below what leaving it in would have done. And if you invest it yourself- who gets the bill if it all goes belly up? The government via benefits. Try getting insurance against your investments, and deduct the cost of that. Plus, NI is for a lot more than your pension...
Hi sir .please i needs your help. My husband is daht 4 months before state pension? Naw after 3 years me reac state pension. So is maybe husband pension give me ????
Question, I worked for royal mail, have 37 full years on my state pension, only just found that I was COPE, my state pension is short of max, but found that there is £112 per week in the COPE, does this automatically get paid when I reach UK pension age ?
The problem with the state pension, is - or was - that the WORKING population's taxes FUNDED the pensions of those who WERE THEN retired! NOT a sustainable long-term policy!
Thanks J Allan. Yes its an interesting one but also curiously similar to our healthcare system in that the working population pays towards a healthcare system that is primarily used as we age. Its simply wealth transfer from one generation to another. Why do you think it wouldn't be sustainable?
@@EdmundBaileyUK: Because, with lifespans ever extending, and retirement ages falling; the source/supply of funds is reducing, whilst the uptake of funds is increasing! The issue is that the British system has always relied upon the worker, to fund the retiree - no investment plan! But at some point - a point that is getting ever closer - THAT isn't going to work! Simply because the changing ratio won't permit it to work!
I worked for BT and without my knowledge was contracted out. Your not aware of these things till you claim. even the Sate Pension age changed from when i started paying in. This does not bread trust in systems that last that amount of years.
By law, the company is required to tell you. It would have been in the letter welcoming you to the scheme. Your state pension age is not relevant to this- your scheme retirement age is not tied to your state pension age. It is usually flexible- you can take it a few years earlier, or delay it. State pension can also be delayed.
@@Tensquaremetreworkshop I took my works pension at 50 and my state one this year a year longer than i was told when i started. We had no information about lower Nat Insurance when i started paying in to the works one so that was against the law then. A bit late now
You SHOULD be aware! Most - if not all - major employers operate contracting-out ... the relevant scheme benefits, for which, have to at least meet the additional-state-pension payment amount!
I just feel like I am getting robbed. I would rather get my money back and opt out of a state pension. Let me invest my own money. With the age going up for State pension. I will be dead before I get it
Sustainability. It's not. It's completely unsustainable. To see that you need one number and to track it over time. You need to know the liabilities of the state pensions [and the public sector pensions too]. That liability number is growing at over 10% per annum. So to be sustainable, you need 10% growth in GDP year on year. It's not going to happen. The current liabilities come to 14 trillion if you fiddle the number down by assuming a high discount rate. So what about gearing? Pension debt to GDP = 14/2.5 = 5.6 times total UK earnings. 11 times total tax revenues? That's not sustainable. Given that you cannot allocate all taxes to debts, for the simple reason that taxpayers will just vote in someone who provides services for their payments, the actual key ratio is to look at core spending, and take that away from tax. What's left can go on the debts, That is the true ratio. The pensions won't be paid. Or debt per taxpayer. That's £600,000 per tax payer. Can every tax payer afford that? Can each tax payer afford this year's £60,000 increase? No. Or you can look at the growth in debt payments as a percentage of tax. That's hit 30% and is rising rapidly. So on all measures its not affordable. The key problem is that the liability number is not reported and not talked about. No one gets an annual statement saying your share of the debt is £600,000 and if you don't pay, we will take you to court, jail you and asset strip you to pay. That's the big lie and Steve Webb for some reason never said how big the debts were. That's the core issue. Why did he not say?
We may be 'having fewer babies', but immigration more than makes up for this- the UK population has, is, and will grow. Government will/ have to ensure this, as GDP has to keep growing in order to borrow more each year. (Deficit spending, GDP is the 'asset' governments borrow against.) Doing this by increasing productivity would be nice, but that is not happening.
How does immigration work? Do immigrants work and not demand any pensions? A min wage migrant pays £900 a year in tax. The average person in the UK consumes £16,500 a year in state services. More if you are on min wage because of redistribution. How does that help pay pensions when the state makes a loss Growth. What rate of growth do you need to keep the pensions sustainable? You need to know the size of the liabilites and the rate of growth of the pensions debts. Turns out that the size is £14 trillion, and its annual rate of growth is over 10% per annum. How do you get 10% per year, year after year after year, of 10% increases in productivity. When it comes to that increase, the workers getting more productive have to accept that all that increase goes to the state for its pension debts. Do you think that will happen or do you think that is fair? This is the issue. The debts are hidden off the books
@@Nickle314 I would need to see your workings out to comment on the numbers, but I was not fundamentally addressing this issue. The comment in the video was about reducing UK population, and I expressed my view that this will not happen, because the government needs them to maintain GDP growth. Immigrants are usually young (so years off retirement), much of their education cost is behind them, and they tend to have more children. Not all, of course- which is why we see government picking and choosing who they let in. One of the main drivers of Brexit, since membership prevented much of this. Note that I am not advocating for or against Brexit- only seeing some of the motivation in others. Ideally (from the govt POV) you want young, English speaking people who already have tertiary education. Better bet than your own children... The real 'solution' to pension costs is to increase the age of retirement. A lot. There are other possibilities, such as making state pensions means tested (such as in Australia) but that is difficult given the way they were formed- you pay NI to fund yours- although one could argue it is an insurance against poverty, not a fund. ATM it is possible to work 30 years, pay voluntary contributions for 5 more, and then have 30 years in retirement. The sums do not add up (back of envelope, you get your contributions back in under 2 years), so something has to give. Linking state pension age (not retirement age) to life expectancy would de-link it from politics- it would be an automatic index.
@@Tensquaremetreworkshop They aren't my numbers, they are ONS numbers. If you search for pension liabiltiies in the national accounts from the ONS you will find the historical figures. 2005, 2010, 2015 and 2018 are available. From that you can get the annual rate of growth, and you can work forward. So can you get above 10% growth in GDP? On the more migrants are the solution that's easy to check . The ONS has the population of the UK. The Whole of Government Accounts [WGA] has the annual state spend. You then just divide the two numbers to get the spend per person [average]. For the payments in, you can google the level of min wage. Then there are lots of online tax calculator. Plug that wage in, and you get back the tax paid. They will pay some additional tax, but not much. Most of their income goes on rent [VAT free] and food [VAT free]. What little remains, may or may not be spent on VAT goods, but that's just a percentage. So that's where the numbers all come from. Government sources. All numbers you can check.
@@Tensquaremetreworkshop Immigrants are usually young (so years off retirement), much of their education cost is behind them, and they tend to have more children ========== Again, the only way a migrant helps is if tax generate exceeds annual state spend. You need to factor in the cost of their children as well. The UK government when you look at their average output, the product of the school system produces liabiltiies. There's a deficit.
@@Tensquaremetreworkshop Ideally (from the govt POV) you want young, English speaking people who already have tertiary education ===== No, you need to get in migrants who pay more tax than they cost, and reject those that do not. Doesn't matter where they come from etc, just that condition [plus no criminals]
