Greece; Is this the beginning of the end for the Euro?

[snoop51]

Be careful though, it will not always work. especially if someone died shortly after it was set up, and it could be proven that it was done to avoid tax.
And if it to avoid or mitigate IHT, then the donor must live 7 years, and it must be an absolute gift (without reservation ).

That's why I said I don't know whether it is still possible, perhaps I should have said feasible instead. This was set up quite a long time before my Dad hit retirement, he hated the idea of having to pay tax on what was already taxed income in his eyes. It's certainly a lot more than 7 years and the solicitor says it's all OK. I guess it is better to set these things up earlier rather than later though.

 

[renault12ts]

Should be fine.

 

[racall]

Pension cash inn

I just recieved a letter from my pension scheme offering to exchange it for cash (its legit)

Now i only paid in to it for a couple of years in about 1975 and put in about £100.

As its a trival amount i just wonder what the buy it figure might be.

Any thoughts?

Would it be compouned intrest at say 3% for 35 years.

 

[renault12ts]

I just recieved a letter from my pension scheme to exchange it for cash (its legit)

Now i only paid in to it for a couple of years in about 1975 and put in about £100.

As its a trival amount i just wonder what the buy it figure might be.

Any thoughts?

Is this the only pension fund you have?

Under triviality rules you can take the cash if your total funds (from all sources) are below a certain amount. Are you sure they haven't advised that you "may" be able to take it as cash, not that you definitely "can" take it as cash. And there will be a tax charge in any event.

 

[racall]

Is this the only pension fund you have?

Under triviality rules you can take the cash if your total funds (from all sources) are below a certain amount. Are you sure they haven't advised that you "may" be able to take it as cash, not that you definitely "can" take it as cash. And there will be a tax charge in any event.

Yes i have another pension that i am drawing at the moment Approx 7K per annum and also the letter said might be able.

 

[renault12ts]

Oh well...I suspect your pension will grow by about 50p (before tax). But you will be able to take 25% of what ever it is, tax free.

 

[racall]

Might buy me a gallon of finest then.
Any way i.ve sent the form back Freepost

 

[Dryce]

One of the reasons the private sector pensions are so poor is the almost universal withdrawal of final salary schemes by companies citing they were simply unaffordable. The reasons given at the time were the poor returns from a falling stock market made funding them impossible and increased life expectancy of an greater number of retired people.

The government changed the accounting rules so that pension liabilities became a bigger burden on the balance sheet.

Some companies hadn't been too pressed on their funds because the stock market growth had supported the funds and allowed some to take contribution holidays.

The government started taxing pension fund growth.

The stock market performance started to expose the funds.

Combine all of that that with increased liabilities from life expectancy and the outcome was certain.

If you look at large UK PLCs such as BT and BA the pension funds went from being a burden to a a company solvency threat.

 

[snoop51]

Combine all of that that with increased liabilities from life expectancy and the outcome was certain.

If you look at large UK PLCs such as BT and BA the pension funds went from being a burden to a a company solvency threat.

So in place of large UK PLC's such as BT & BA insert PUBLIC pensions funds of which there are none as they are to be paid from future taxation and we have a COUNTRY solvency threat. To be paid for by our children / grandchildren, not a very good legacy really.

 

[Alfie]

Lets not forget what Gordon did to the Pension funds by charging tax on the dividends of the investments. This one swoop did more harm to the Pension funds than anything else. Robert Maxwell would have been very proud.

 

[Dryce]

So in place of large UK PLC's such as BT & BA insert PUBLIC pensions funds of which there are none as they are to be paid from future taxation and we have a COUNTRY solvency threat. To be paid for by our children / grandchildren, not a very good legacy really.

Basically yes.

But there are two types of public sector pensions. Some are funded in that there is money put into a specific fund by employees and the employer - like a traditional company final salary scheme (eg. universities) - some are not - where contributions are not put into a fund (eg. civil service) but there is a liability.

Even where the schemes are funded there is an underlying assumption by staff that the deficit and liability problems can be solved by the employer because public funds will save the day.

In the private sector there is an understanding among many staff that if a company diverts its resources to the pension fund that something else will be cut such as future investment or head count. So the negotiation is based on reality.

In the public sector the traditional assumption is that HMG or local councils will just find the money.

 

[Dryce]

Lets not forget what Gordon did to the Pension funds by charging tax on the dividends of the investments. This one swoop did more harm to the Pension funds than anything else. Robert Maxwell would have been very proud.

That's what happens when the electorate votes in a party that is blatantly planning to increase public spending while loudly promising not to raise VAT or income tax.

 

[clever dicky]

But where did it all go ?

 

[Colin_b]

But where did it all go ?

The number of civil servants increased by around a million between 1997 and 2007.

Helped to end boom & bust, apparently.

 

[Dryce]

But where did it all go ?

Well during this time of apparent economic strength we were paying more for services that we already had (eg. NHS) and for more people to do non-jobs and PFI while simple infrastructure like our roads were left to fall to pieces. We have extra tiers of government with £400+ million buildings.

We now push kids through school until they're 18 instead of 16 and then through the higher education system until they're 21 (22 with a gap year!).

It's apparently important that they should contribute to the economy for between 2 and 5 fewer years while studying for degrees that will be so important working in a call centre or in financial services (or in public sector clerical position).

While at the same time engineering and chemistry departments in universities have declined.

But it helps hide youth unemployment. Or at least it did.

Some of this is not down to oine or other side of the political divide. PFI and the edukashun delusions started under the previous previous government.

Then Brown came along and dogmatically set taking this mess to a substantially higher level.

 

[Nik_Endeavour]

While at the same time engineering and chemistry departments in universities have declined.

But it helps hide youth unemployment. Or at least it did.

Some of this is not down to oine or other side of the political divide. PFI and the edukashun delusions started under the previous previous government.

What I do not get is why there is a shortage of doctors/math teachers/engineers (the degree type not technitians)/biomedics etc but the courses for media and psycology are full. Why not make medical schools free for anyone with good A Levels (AAA - AAB - ABB) providing that they work in the NHS for 10 years afterwards.

The scientific and engineering departsments will struggle even more now that fees are £9000 because if before was the lack of enthusiastic in there for the long run type students now there is the financial block.

Here is the list of current shortage in the UK. Why the government throws moneyon crappy non jobs but doesn't offer free education for these occupations only filling the shortage gap and limiting unemployment.

Tier 2 Visas | National Shortage Occupation List | UK Immigration

 

[snoop51]

While at the same time engineering and chemistry departments in universities have declined.

But it helps hide youth unemployment. Or at least it did.

Some of this is not down to oine or other side of the political divide. PFI and the edukashun delusions started under the previous previous government.

What I do not get is why there is a shortage of doctors/math teachers/engineers (the degree type not technitians)/biomedics etc but the courses for media and psycology are full. Why not make medical schools free for anyone with good A Levels (AAA - AAB - ABB) providing that they work in the NHS for 10 years afterwards.

The scientific and engineering departsments will struggle even more now that fees are £9000 because if before was the lack of enthusiastic in there for the long run type students now there is the financial block.

Here is the list of current shortage in the UK. Why the government throws moneyon crappy non jobs but doesn't offer free education for these occupations only filling the shortage gap and limiting unemployment.

Tier 2 Visas | National Shortage Occupation List | UK Immigration

My job's on there then! Thank god experience counts for a lot because I wouldn't even get a foot on the bottom rung nowadays as a new starter.