Pensions administration review

Pensions administration review: as most readers know the old age pension paid out by the state has a fundamental problem which is that there is a decreasing fund out of which to pay it. Accordingly, HM Government takes the view that since there is no point in leaving citizens to save for their old age (they will not) it is necessary for the state to syphon off the necessary with as little squawking on the part of those affected as possible.

Hence, we have auto-enrolment. Here should a citizen find himself/herself employed 1% of the annual salary is deducted from that citizen and the employer pays a further 1%. The admin costs are high but inevitable. However, they decline as a percentage of the funds handled since the following year the rate goes up by a percent and so on until 5% is achieved. 10% of £25,000 gives £2,500 which is tolerable in relation to the sums raised and handled.


What is interesting is that many citizens will have had as many as ten employments or more by the age of 40 and, even then, there is another twenty-five years ahead of the citizen before a pension can be drawn. It does not take a lot of imagination to foresee that many citizens will lose track of what they have saved. At this point HM Government will reasonably claim that citizens who cannot be bothered to keep a record of their savings do not deserve much sympathy as they lie in the gutter. Simultaneously, HM Government will sit back to harvest tons of dough under the unclaimed assets legislation that will be passed.

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I see that Accrol (LON:ACRL) has got into trouble and is now suspended at 132p. Its business is making bog rolls. I would have thought that a bog standard trade. Seemingly not.

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Finally, Hexagon AB is quoted in Stockholm and now stands at c. 400 Swedish kroner. Apparently the fans get hit by shit by the end of the month. The margin rate is 15% at IG Index. It might be cheaper elsewhere. Hurry along now and avoiding getting hexed.