Sadly this is another well meant government and civil service cock up.
NI requires compulsory contributions from employer and employer, and one of the benefits is the old age pension. Why not just make that scheme work adequately and fund itself over a period, instead of lobbing another one on top? Or just oblige all employers to offer an approved scheme?
Most biggish employers already offer a pension scheme, but people won't join. Many low paid employees don't see the point because they can't see themselves getting above benefits level in retirement anyway (and they are unlikely to with NEST).
The defined contribution scheme of which I am a trustee pays double the contribution from the employer that the employee pays, up to 15% total. So for 4% of gross salary after tax relief, even a lower rate taxpayer will get 15% into a fund, plus 4x salary life insurance. They can get 25% back tax free, which will just about cover their costs, with any pension as a bonus. Still, fewer than 25% will join despite people like me telling them it's free money! Even some higher-rate taxpayers won't join, even though they could make a profit just with the tax-free cash!
Private sector employers will not, in many cases, be able to afford to level benefits up when they are obliged to enrol the 75% against their will. They will level down, increasing the gulf between private and public sector pensions. We will end up like Greece, where all young graduates wanted to work only for the government, because of the pensions - until it all tipped over.
Great plan :-(
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>> Sadly this is another well meant government and civil service cock up. >>
Enacted by Brown & Labour.
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And followed by Cameron & co.Wait till they finished with the NHS.there won't be a N in it.
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>> And followed by Cameron & co.Wait till they finished with the NHS.there won't be a
>> N in it.
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My sincere thanks will go to Cameron if he manages to get the "N" removed. The earlier the better. "National" makes public think it is free and limitless, that engenders a "it is mine for free" entitlement attitude, it has never worked and never will, such an attitude leads to a Greek tragedy.
Shame that the " & co" (Liberals) have watered down the reforms.
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No thanks from me John.I has never been free you pay NI its a tax don't forget that.
Bad attitude on your behalf towards the NHS.
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People don't value what they don't have to work or pay for, and they abuse it.
Pay-and-claim-back would help a lot. On the rare occasions I visit the quack's, it's like a social club. People call 999 when the cat's missing. Massive waste of prescription medicine.
If we were serious could we cut health spending by 25% without serious impact on essential services?
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Like yer thinking Manatee, had never really thought of it like that. I like the idea of a free service for all, but you are right about the doc's (although the last time I went there was over 2 years ago)
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Company pension changes, starting October 2012 - Manatee
