The answer is that no sane finance director of a private institution could offer a DB scheme going forward with any sense of rationality. Which it's why it's limited to the public sphere where they don't give a fook about who's going to pay
My information is that there are 19 of the FTSE 100 (including my employer) which has a DB scheme, but that there are none that are open to new entrants. I'd be interested to hear if that's not right
AND THEN COOKIE WOKE UP AND IT WAS ALL JUST A DREAM
Public state pension liabilities are at 7 TRILLION POUNDS. This includes totally unfunded state employer (rather than old age) benefits of 5.6 TRILLION POUNDS
The only reason I feel better about not having a DB pension is that I am increasingly sure the ones people do have won't be paid out, or certainly won't be paid out in full
There's plenty of wealth to fund guaranteed benefits (this is what most European countries do for everyone), it just has to be stripped out of the wrong places
It can be moved. The UK buys "the markets say" more than any other developed country apart from the US and as a result we have getting on for the worst pension provisions.
Current workers paying for past ones’ retirements.
Isn't this what all pensions are?
You buy a bunch of equities or bonds in a DC scheme and you're counting on owning the benefits of some future people's labour, ideally at a lower price now than it would cost you in the future.
There's more risk associated with the outcome of a DC pension certainly, but fundamentally you're still using money you have now to buy assets that give you a claim on the value of future labour.
There's more risk associated with the outcome of a DC pension certainly, but fundamentally you're still using money you have now to buy assets that give you a claim on the value of future labour.
Yes, but in a DB scheme if the limited money you have put in now doesn't meet the promised income SOMEONE FVCKING ELSE PAYS FOR IT.
Are you being deliberately obtuse or are you just slow?
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No, you need to go public sector/in house.
I think the RMT pension scheme is still final salary and a fair few technically private sector employers are part of it.
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The answer is that no sane finance director of a private institution could offer a DB scheme going forward with any sense of rationality. Which it's why it's limited to the public sphere where they don't give a fook about who's going to pay
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About 500000 people are currently in dB schemes that are still open to new members in the private sector.
HUNT THEM DOWN!
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If only you knew that list of companies eh clergs
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There are still some non public sector ones
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Chz for the hepeat, asti
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Why Cookie? I interviewed for a job not that long ago where one of the benefits included the RMT final salary scheme.
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My information is that there are 19 of the FTSE 100 (including my employer) which has a DB scheme, but that there are none that are open to new entrants. I'd be interested to hear if that's not right
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What sort of company was it @ LP?
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I've PM'ed you.
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I'm on one
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Lady Penelope - the question was "law firms". Long term commitment to employees? GTF.
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AND THEN COOKIE WOKE UP AND IT WAS ALL JUST A DREAM
Public state pension liabilities are at 7 TRILLION POUNDS. This includes totally unfunded state employer (rather than old age) benefits of 5.6 TRILLION POUNDS
The only reason I feel better about not having a DB pension is that I am increasingly sure the ones people do have won't be paid out, or certainly won't be paid out in full
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There's plenty of wealth to fund guaranteed benefits (this is what most European countries do for everyone), it just has to be stripped out of the wrong places
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I agree they won't pay out tho
Because boomers must have their trinkets
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Yeah there's loads of wealth which is totally mobile and which will realistically never fund these liabilities. Good shout
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It can be moved. The UK buys "the markets say" more than any other developed country apart from the US and as a result we have getting on for the worst pension provisions.
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https://www.pensionbee.com/blog/2018/february/what-is-the-average-pensi…
The average pension pot @ 50 is £71k - £112k for men and £50k for women.
How will people fund a decent retirement on such a small sum - i think this will purchase a £1250 annuity from 65
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that is crazy dash.
why don't people just max out their personal allowance each year? it is very tax efficient.
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why don't people just max out their personal allowance each year? it is very tax efficient.
Because the taxman may raid it all in the future, especially for people who have loads of assets. And I might be dead by then.
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Current workers paying for past ones’ retirements.
Isn't this what all pensions are?
You buy a bunch of equities or bonds in a DC scheme and you're counting on owning the benefits of some future people's labour, ideally at a lower price now than it would cost you in the future.
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Current workers paying for past ones’ retirements.
Isn't this what all pensions are?
No. DC pensions only pay what they are worth based on input when they become payable
DB pensions pay a promised amount no matter what, with future people making up the shortfall (if there is one)
But I'm sure you know this
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There's more risk associated with the outcome of a DC pension certainly, but fundamentally you're still using money you have now to buy assets that give you a claim on the value of future labour.
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Clergs, I was being sarcastic, you obv have the ability to get that list.
[sarcastic]should I use boxes like this next time? [/sarcastic]
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There's more risk associated with the outcome of a DC pension certainly, but fundamentally you're still using money you have now to buy assets that give you a claim on the value of future labour.
Yes, but in a DB scheme if the limited money you have put in now doesn't meet the promised income SOMEONE FVCKING ELSE PAYS FOR IT.
Are you being deliberately obtuse or are you just slow?
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Blindtom, don't you work in the public sector (sort of)?
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