Comments on: Say That Again http://skuds.org/2008/09/say-that-again/ "Please send me evenings and weekends" Fri, 10 Feb 2012 17:15:43 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Danivon http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99538 Danivon Mon, 29 Sep 2008 19:31:25 +0000 http://skuds.org/?p=2484#comment-99538 I don't believe the £100bn figure, sorry. The fact is that at the same time as taxes were changed reduce yields, they were reduced on other things that increase yields. The £100bn is a purely theoretical loss, which has been guessed at in isolation from any other effects on the pensions industry at the same time (eg, cuts in Corporation Tax leading to greater profits, leading to higher dividends going into pension funds). The main effects on the long term viability of pension funds have been the following: 1) An actuarial lag in noticing increasing life expectancy, which when suddenly caught up on meant that liabilities were a lot higher than previously thought. 2) The fallout from the disastrous misselling of the 1980s and 1990s which led to large scale compensation and many changes to Pension law (notably the 1995 Act, which brought in lots of extra guarantees). 3) The fortunes of the stock market, notably during the 2001 tech-bubble bursting and now in the credit crunch. Despite the general upward trend in yields in investments over time, those are the main negative drags on pension fund growth and the value of individuals' pensions. I don’t believe the £100bn figure, sorry. The fact is that at the same time as taxes were changed reduce yields, they were reduced on other things that increase yields. The £100bn is a purely theoretical loss, which has been guessed at in isolation from any other effects on the pensions industry at the same time (eg, cuts in Corporation Tax leading to greater profits, leading to higher dividends going into pension funds).

The main effects on the long term viability of pension funds have been the following:

1) An actuarial lag in noticing increasing life expectancy, which when suddenly caught up on meant that liabilities were a lot higher than previously thought.

2) The fallout from the disastrous misselling of the 1980s and 1990s which led to large scale compensation and many changes to Pension law (notably the 1995 Act, which brought in lots of extra guarantees).

3) The fortunes of the stock market, notably during the 2001 tech-bubble bursting and now in the credit crunch.

Despite the general upward trend in yields in investments over time, those are the main negative drags on pension fund growth and the value of individuals’ pensions.

]]> By: Ash http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99536 Ash Mon, 29 Sep 2008 09:40:07 +0000 http://skuds.org/?p=2484#comment-99536 LOL - love the way you think that nicking over £100 Billion from pensioners is not going to have any effect on them. You are not Gordon Brown's financial adviser are you Danivon? LOL – love the way you think that nicking over £100 Billion from pensioners is not going to have any effect on them.

You are not Gordon Brown’s financial adviser are you Danivon?

]]> By: Danivon http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99528 Danivon Sun, 28 Sep 2008 17:17:15 +0000 http://skuds.org/?p=2484#comment-99528 So, Ash, an actuary wants to blame the government for a hole in pensions when it's his own profession which has made a MASSIVE mistake? I've seen first hand how the industry is trying desperately to introduce adjusted rates without anyone noticing... By the way, the polls suggest that people trust Brown/Darling more than Cameron/Osborne over the economy, so clearly it's not just the party faithful. Perhaps they remember the 1990s... So, Ash, an actuary wants to blame the government for a hole in pensions when it’s his own profession which has made a MASSIVE mistake? I’ve seen first hand how the industry is trying desperately to introduce adjusted rates without anyone noticing…

By the way, the polls suggest that people trust Brown/Darling more than Cameron/Osborne over the economy, so clearly it’s not just the party faithful. Perhaps they remember the 1990s…

]]> By: Hiro http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99526 Hiro Sat, 27 Sep 2008 09:16:26 +0000 http://skuds.org/?p=2484#comment-99526 Ash....why all the angst...you seem so angry...almost to the point of being nasty...chill out listen to a bit of Floyd as I am doing this Saturday Morning... Ash….why all the angst…you seem so angry…almost to the point of being nasty…chill out listen to a bit of Floyd as I am doing this Saturday Morning…

]]> By: Ash http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99525 Ash Sat, 27 Sep 2008 09:07:27 +0000 http://skuds.org/?p=2484#comment-99525 It's been in the range of £100 - £150 Billion ever since 2006 when Terry Arthur, a Fellow of the Institute of Actuaries, calculated the compound loss to pensioners. The Labour Party were warned before this raid on the pension schemes that ordinary pensioners would end up worse off, but like the 10p tax debacle they decided to go ahead with it anyway. The fact that people are living longer actually make the governments decision worse - they knew that and they knew that fixed pensions would fall because of it - but still they decided to cut pensions even more. And still we get the party faithful claiming that you can trust Labour better than the Tories over pensions... It’s been in the range of £100 – £150 Billion ever since 2006 when Terry Arthur, a Fellow of the Institute of Actuaries, calculated the compound loss to pensioners.

The Labour Party were warned before this raid on the pension schemes that ordinary pensioners would end up worse off, but like the 10p tax debacle they decided to go ahead with it anyway.

The fact that people are living longer actually make the governments decision worse – they knew that and they knew that fixed pensions would fall because of it – but still they decided to cut pensions even more.

And still we get the party faithful claiming that you can trust Labour better than the Tories over pensions…

]]> By: Danivon http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99523 Danivon Fri, 26 Sep 2008 21:15:43 +0000 http://skuds.org/?p=2484#comment-99523 Is it £100Bn now? It goes up every time an angry right wing blogger/commenter mentions it... The main effect on pension values is nothing to do with the government, it's that the actuaries only just noticed that people were living 10 years longer than they used to, and suddenly the liabilities went up. Is it £100Bn now? It goes up every time an angry right wing blogger/commenter mentions it…

The main effect on pension values is nothing to do with the government, it’s that the actuaries only just noticed that people were living 10 years longer than they used to, and suddenly the liabilities went up.

]]> By: Ash http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99521 Ash Thu, 25 Sep 2008 17:50:33 +0000 http://skuds.org/?p=2484#comment-99521 "While the government look for ways to protect the homes, savings and pension funds of the nation" This would be hilarious if it wasn't so serious. This is the outfit that ripped off over £100 Billion from the pensions of the UK worker - and now, apparently, they are looking for ways to protect them. You couldn't make it up.... “While the government look for ways to protect the homes, savings and pension funds of the nation”

This would be hilarious if it wasn’t so serious. This is the outfit that ripped off over £100 Billion from the pensions of the UK worker – and now, apparently, they are looking for ways to protect them.

You couldn’t make it up….

]]> By: jams O'Donnell http://skuds.org/2008/09/say-that-again/comment-page-1/#comment-99514 jams O'Donnell Wed, 24 Sep 2008 10:00:30 +0000 http://skuds.org/?p=2484#comment-99514 Stirring stuff Skuds. I'm not sue a fourth term is achievable. It remains of course far preferable to seeing the tories back. Frot as an anti spam word! Stirring stuff Skuds. I’m not sue a fourth term is achievable. It remains of course far preferable to seeing the tories back.

Frot as an anti spam word!

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