12-16-2025, 02:47 PM
(12-16-2025, 11:01 AM)baggy1 Wrote: I don't see the need to invest in a higher risk funds if, as they are younger, they will have compound (safer) returns over a longer period. The higher risk returns are needed when you are near the end and your pot is short.
And with auto-enrolment is place then it is unlikely that the future pensioners will have just the State Pension and puts a limited time benefit on the PAYE proposal, as everyone will have more than one income and need to do a return in the future. Plus there is the added administration around that as there is with any PAYE system. Running a PAYE system for 20m pensioners would be a nightmare.
By focussing on the issue and not the reason you will get into a death loop - the focus needs to be on that dependant ratio and increasing those paying in as opposed to the ones taking out. Having said that though maybe Nigel really does have the solution by reducing the NHS it should stop supporting the elderly and hep them on their way earlier therefore reducing the pension bill.
That goes completely against any investment logic I've ever read! Thank goodness my kids have been long on US-tech in their kiddy ISAs rather than plodding along at a 1.5-4% return on cash/
As for auto-enrolment, it will end up being the greatest misselling scandal in history for a variety of reasons. The first being you can virtually guarantee the State Pension will become means-tested (paying twice anybody?) and the second being that higher earners probably don't appreciate they're not putting as much in as they think they are - and their employer certainly isn't!