Our favourite retired accountant from Wandsworth is all over the place shouting about his Peoples\’ Pension Plan.
And I\’ve just noticed a nice little oddity about it.
return the capital invested over the life of the asset, so that at the end of the period the sponsor would effectively own the asset, as is common with finance leases
Fair enough, this can definitely be done.
But then he tells us that the returns on these projects would be around gilts rates.
@RichardJMurphy Richard Murphy
@kentindell People\’s Pension would pay about gilt rate – which may not beat inflation last year but better than the stock mkt in last decade
Which is interesting because if you put £100 into a gilt then in 30 years you get £100 (nominal, to be sure) back. With the Peoples\’ Pension Plan you get the same interest as a gilt but don\’t get the £100 back.
It does take some effort to come up with an investment even worse than gilts, doesn\’t it?
But if your intention is to fund the State out of Peoples retirement savings by promising a little something for a lot of nothing, then it makes sense, doesn’t it?
Spot on!
I expect his chums at the TUC will be at the front of the queue to switch their current rubbishy pensions over to this most excellent scheme.
Anything which has “The People’s” prefixed to it is destined to end in gulags and mass executions.
The People’s Pension – another insane idea from the People’s Tax Prat
How’s his book doing now his family have done their Christmas shopping?
If you own the asset at the end, ant you sell it?
I am sure this will work fine once we have abolished all those evil tax havens. (Sarcasm alert).
I am really unclear whsat the asset is….can anyone explain? Are you merelybbuying a stream of incoe from gilts or are you going to be able to share in capital growth from those gilts…ha ha…..