Private pensions may be cut by up to 20%

  anchor 14:48 23 Jun 09
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New proposals from the EU could result in the pensions of employees in private pension schemes being cut by up to 20%.

This certainly seems to have a basis in truth.

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The new EU rules are due to come into force in 2012. State employees, including MPs and civil servants, will be insulated from the effects of the EU measures.

  Cymro. 15:09 23 Jun 09

I don`t know if I am expected to sympathise with these people but I am afraid that I don`t.
With the way the world economy is and people living longer lives all the time such generous pension schemes are just unsustainable and so would have to come to an end eventually.

The fact that this is a EU proposal is irrelevant as it would have happened eventually anyway if and when a UK government found the guts to sort out the pension problems of this country.

  anchor 15:24 23 Jun 09

Cymro. You appear rather cynical.

In my opinion only some of the private pension schemes are generous. The government already took action against these when Gordon Brown introduced annual £5billion stealth tax on pension funds. It also seems that the state retirement age is to be raised.

In contrast those of many of those in the public sector may be regarded as receiving generous benefits. They still will have gold-plated final-salary pensions underwritten by the taxpayer.

  anchor 15:34 23 Jun 09

Cymro: On re-reading your post in this thread I now understand better your view.

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I see that the proposals will not effect you, as you stopped working 30 years ago, thus are not eligible to a significant private pension.

  Stuartli 15:51 23 Jun 09

Gordon Brown's Pensions Funds raid of £5bn annually from 1998 onwards meant that anyone paying into a pension fund had to increase the amount involved by about 20 per cent just to stand still.

A double whammy and one which led to the destruction of one of the best, if not the best, pension schemes in the world.

Some info:

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  Cymro. 17:24 23 Jun 09

"I see that the proposals will not effect you, as you stopped working 30 years ago, thus are not eligible to a significant private pension".

Yes quite right anchor, more or less anyway.
Mind you perhaps I have a private pension that I paid in to myself.
Congratulations on a good memory.

  zzzz999 18:57 23 Jun 09

Anchor - In contrast those of many of those in the public sector may be regarded as receiving generous benefits. They still will have gold-plated final-salary pensions underwritten by the taxpayer.

The average generous civil service pension is £4,000 a year, just enough to keep the typical ex civil servant pensioner above the minimum threshold for benefits.

  Forum Editor 19:30 23 Jun 09

this is a proposal - and that's all it is at the moment - to force the Insurance industry to change the way it regards the value of investments. The proposal would, if implemented, mean that Insurance companies trading within the EU would have to take into account the current (underlined) value of investments when making the calculation.

As fourm member has pointed out,it's designed to prevent the very thing that has happened in the past, when one insurer which operated on a basis of prudence was put at a trading disadvantage because another insurer was less cautious.

There'll be the usual 'fat cat' posts from those who have failed to understand what this is really all about.

  Grey Goo 20:51 23 Jun 09

I am sure that whatever and whenever this occurs the insurance companies will take full advantage.

  Forum Editor 22:44 23 Jun 09

I don't follow..... take advantage of what, and in which way?

  dwaynedibbly 22:50 23 Jun 09

Another case of the EU trying to dictate to the UK.

That aside, the debate on pensions always throws up a plethora of differing view, and rightly so.

However I do take issue with the views such as anchor. A gold plated pension underwritten by the taxpayer.

I`m a taxpayer, I`m also a public sector employee.
I paid out nearly 400 pounds last month toward my pension.
I count myself fortunate, I`m in a relatively well paid and stable from which I contribute greatly toward my pension.
The vast majority of public sector servants, note the use of the word servants, are on low paid jobs with an average pension in the region of 5k.
Gold plated?!? I think not.

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