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£10,000 for the younger generation

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£10,000 for the younger generation

The report by Lord Willetts includes a number of proposals to bridge the wealth generation gap including £ 10,000 for the younger generation.

Whilst some of suggestion might be introduced at some future date by a Labour Government I cannot see the present government implementing anything that would reduce the income or savings of the elderly. Even talk of changing the triple lock cost the government dear at the last election.

A payment of £ 10,000. might sound a good idea but where would the cut off point be ? Imagine if you just missed out by a few days or weeks.

However something does need to be done to give the younger generation a fair deal but for one group to gain another must face a reduction.

No easy answers but essential a solution is found.

For those who like refrences details of the report are in todays Guardian along with other newspapers and the BBC news at 1

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Re: £10,000 for the younger generation

maybe we should ditch the ponzi scheme that is the state pension Wink

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Minivanman
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Re: £10,000 for the younger generation

@gleneagles

I think we touched on this a couple of weeks back and from the same report?

Something needs to be done that's for sure and whilst Labour will not lose votes if only the 'rich' pensioners are targets for cost reduction or wealth transference, the Conservatives most surely would.

Personally I think they are putting the cart before the horse with that £10,000 handover in order to help with house purchase because a) such an amount hardly scratches the surface and b) the rental market needs some serious attention from our legislators first such as rent controls and tenancy protection - and one that would even go so far as being able to pass on those rights to your children. 

As for the report from what little I've read it sounds fair, but what has fairness got to do with the vested interests of many of those in Parliament who if not scuppered, will like Brexit delay it to the point of worthlessness.

 

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Minivanman
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Re: £10,000 for the younger generation

@dvorak

Well it's a fair comparison, but why should we 'investors' lose out?

Ditch and restructure by all means but let those that invested in good faith keep those 'earned returns' and present the new generation with something else we cannot trust them to deliver. 

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Re: £10,000 for the younger generation


@dvorak wrote:
maybe we should ditch the ponzi scheme that is the state pension Wink

But what do you replace it with ?

A number of workers in both works or private pensions have also been losers in the past.

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Re: £10,000 for the younger generation

Ah, the famous Lord Willetts of unintended consequences. Ask any University student.

Can the tax payers ask for a refund on his projects?

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Minivanman
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Re: £10,000 for the younger generation

Well this one has never heard of him before. Wink

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Re: £10,000 for the younger generation

I don't know.. I've suffered with my final salary scheme shut due to the government deciding to shoot themselves in the foot and now have multiple private pensions and a state pension age that changes every year, so I'm one of the losers.

Perhaps scrapping the state pension (and reducing that amount from the tax bill) and having a single pension account that any employer could pay into rather than having one prescribed by them then perhaps people would take personal responsibility for saving for their own future.

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Minivanman
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Re: £10,000 for the younger generation

Indeed, but some will never take personal responsibility for their own future so there needs to be some sort of safety net - hole size to be determined.

These are the same people by the way that don't pick up their dog's poop, park anywhere, live in a tip, worst neighbours ever..... well you get the picture. 

You've caught me in a good mood t'day. Wink

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rongtw
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Re: £10,000 for the younger generation

Just been reading on BBC news this is what they say Huh

Recommendations include:

  • Give £10,000 to all young adults at the age of 25, funded by a new "lifetime receipts tax" that would replace inheritance tax
  • Scrap council tax and replace it with a new property tax targeting wealthier homeowners
  • Use the proceeds from property tax reform to halve stamp duty for first-time buyers and increase public funding for social care
  • Make earnings of those above state pension age subject to National Insurance contributions

I agree with the council tax scrapping and taxing them with more wealth more Thumbs Up

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Re: £10,000 for the younger generation

@rongtw

It would be almost impossible to implement charging those well off more based on their property, it would be necessary to check the financial position of everyone in a high value property, the majority being in London.

People with money have few problems in hiding it from the tax man (or woman) to give the impression they are on a low income.

As for giving the young £10,000 would that apply to all young people even though their parents were millionaires or indeed some young people who may already be millionaires.

Most young people with that amount of cash are likely to use it wisely but some will not and looking at the price of some things in the fashion area, clothes, shoes, handbags some regard these as essential items so spend and enjoy you are only young once.

As stated something needs to be done but this report has come up with some ideas that are to simplistic to work in reality.

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Re: £10,000 for the younger generation


@gleneagles wrote:

 

Most young people with that amount of cash are likely to use it wisely but some will not and looking at the price of some things in the fashion area, clothes, shoes, handbags some regard these as essential items so spend and enjoy you are only young once.


The £10,000 would not necessarily be in ‘cash’...

the commission said it could only be used for housing, education, starting a business or towards a pension.

https://www.theguardian.com/money/2018/may/08/give-millennials-10000-each-to-tackle-generation-gap-s...

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Re: £10,000 for the younger generation


@dvorak wrote:
I don't know.. I've suffered with my final salary scheme shut due to the government deciding to shoot themselves in the foot and now have multiple private pensions and a state pension age that changes every year, so I'm one of the losers.

Perhaps scrapping the state pension (and reducing that amount from the tax bill) and having a single pension account that any employer could pay into rather than having one prescribed by them then perhaps people would take personal responsibility for saving for their own future.

Just before I retired there was a series of meetings where I worked attended by staff from Equitable life telling us how much more we would get by transferring our pensions to them,, bigger lump sum and bigger pension etc.

Well we all know what happened to Equitable life and I knew a number of those who actually transferred, they thought they were acting in a responsible manner.

Very hard to get any sort of guarantee on your pension investments without taking some sort of risk.

One guy living near us has a good pension ............where did he work ?

 

For a insurance company !

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Re: £10,000 for the younger generation

@Anonymous

Thank you for clarification of that.

Jonpe
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Re: £10,000 for the younger generation

The money could, amongst other things, be put towards a pension!  So pensioners are expected to start the youngs' pension schemes with a lump sum from their pensions.

Fortunately, old people are more likely to vote than young people so unless this becomes the policy of all three main parties, it isn't a vote-winner.  Or perhaps it won't be in anyone's manifesto but introduced anyway, just like mass immigration.

I'm not one for promoting more taxation but I don't understand why everyone in England over 60 doesn't have to pay prescription charges.  It's easy for me to say since I'm only on two things but my salary didn't drop at 60 so my ability to pay is the same as it was at 59.  The other anomaly is that NI drops from 12% to 2% at about the same time as income tax increases from 20% to 40%.  If NI is based on income, let it be based on all earned income, or better still, abolish it as a separate item and simply adjust the income tax rate(s).