"Credit Crunch" - Pensions
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"Credit Crunch" - Pensions
With this Global melt down in financial circles going on and most Government/Local councils having problems getting funds back from "dodgy" Icelandic banks, how safe is the military pension and how is it funded ??
Just a numbered other
Your military pension, like that of the rest of the vast army of public servants taken on by Gordon the Moron, is the last thing that'll go down the plug hole.
Kinda glad I've got one to save me from starvation, whilst every other effort to save for retirement has been thwarted by thieving politicians and greedy bankers.
Kinda glad I've got one to save me from starvation, whilst every other effort to save for retirement has been thwarted by thieving politicians and greedy bankers.
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One of the few perks of the public sector are the pensions, which are essentially cast in stone because they're underwritten by the government (which, in theory at least, shouldn't go bust). While old timers had a choice to switch from AFPS75 to AFPS05, newcomers to the forces can now only get AFPS05 which, no matter how many times they said differently, was reviewed with an aim to save the government money. They certainly weren't doing it for you - ministers and MPs pensions are the only ones that tend to get better.
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The public sector pensions and bonuses are under fire but from people who don't understand or don't wish to reveal the facts.
The CS pension is a final salary scheme and the military one is a last year one. In both cases the salaries have a 'hidden' contribution in that an element of annual pay is not awarded but is notionally diverted into the non-existent pensions pot.
The guaranteed pension is an offset for lower CS pay compared with private sector salaries and for service risk.
CS bonuses are also under fire but unlike private sector bonuses that arise from true profit and reward the CS one is funded from the current year pay pot withsome people getting none, some get some and some get a lot. Not awardign any bonus would be tantamount a pay cut of 2-3%. Try and get that passed the unions in any job.
The CS pension is a final salary scheme and the military one is a last year one. In both cases the salaries have a 'hidden' contribution in that an element of annual pay is not awarded but is notionally diverted into the non-existent pensions pot.
The guaranteed pension is an offset for lower CS pay compared with private sector salaries and for service risk.
CS bonuses are also under fire but unlike private sector bonuses that arise from true profit and reward the CS one is funded from the current year pay pot withsome people getting none, some get some and some get a lot. Not awardign any bonus would be tantamount a pay cut of 2-3%. Try and get that passed the unions in any job.
HMG make no savings in reagrd to your Forces Pension. They will just take paements from future taxation. There is no reserve from which to draw.
This is OK as long as the voting public carry on paying their taxes and agreeing with Public Sector pensions.
The 'Black Swan' if you like is demographics. There is clear eveidence that the current 20-40 generation have not produced enough offspring to fund all the Governments future needs. Currently we have 4 tax payers for every pensioner in this country. In 20 years time that is predicted to switch on its head. We will have 4 pensioners for every worker paying taxes. Is the curent HMG account (forward projected) healthy enough for this to carry on. I doubt it; especially as we have just taken on over £100BN in total debt bailing out the banks.
You'd need to verify the demographics figure but I got it from moneyweek. If you are serious about finances I suggest you subscribe!!
Grim
This is OK as long as the voting public carry on paying their taxes and agreeing with Public Sector pensions.
The 'Black Swan' if you like is demographics. There is clear eveidence that the current 20-40 generation have not produced enough offspring to fund all the Governments future needs. Currently we have 4 tax payers for every pensioner in this country. In 20 years time that is predicted to switch on its head. We will have 4 pensioners for every worker paying taxes. Is the curent HMG account (forward projected) healthy enough for this to carry on. I doubt it; especially as we have just taken on over £100BN in total debt bailing out the banks.
You'd need to verify the demographics figure but I got it from moneyweek. If you are serious about finances I suggest you subscribe!!
Grim
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There is clear eveidence that the current 20-40 generation have not produced enough offspring to fund all the Governments future needs. Currently we have 4 tax payers for every pensioner in this country.
The remedy is obvious and logical. Britain needs more high birth rate Muslims.
The remedy is obvious and logical. Britain needs more high birth rate Muslims.
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There is clear eveidence that the current 20-40 generation have not produced enough offspring to fund all the Governments future needs. Currently we have 4 tax payers for every pensioner in this country.
The remedy is obvious and logical. Britain needs more high birth rate Muslims.
The remedy is obvious and logical. Britain needs more high birth rate Muslims.
It is reported in today's press that Pakistan is appealling to its disapora to repatriate $10bn to stave off bankrupcy. In other words the working population would expatriate money whereas the retired population would increase the demands on the welfare and social security system.
Last edited by Wader2; 14th Oct 2008 at 11:01.
I think the problems are just beginning...My father retires very soon. With my grandmother still alive, that make 2 generations of pensioner I'll be funding with my taxes. As I understand it, the birth rate has alreadt dropped off, and as it takes 18 years to grow a taxpayer, I foresee serious problems in the next 25 years re: pensions.
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Just done some checking.
We have 3 pensioners, 27 tax payers incl 2 of the pensioners, and 15 children.
In 2 years time it becomes 5, 22, 15.
In a further 2 years, 7, 20, 15
Then 2 years after that 9, 18, 15.
At the moment we are in surplus with tax payers but only as my mother-in-law had 6 children.
The eldest child will not be productive for a further 3-4 years if he goes to university.
We have 3 pensioners, 27 tax payers incl 2 of the pensioners, and 15 children.
In 2 years time it becomes 5, 22, 15.
In a further 2 years, 7, 20, 15
Then 2 years after that 9, 18, 15.
At the moment we are in surplus with tax payers but only as my mother-in-law had 6 children.
The eldest child will not be productive for a further 3-4 years if he goes to university.
