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Interest Rates

C

Colin Barron

pfm Member
I have it on good authority that interest rates will rise in the not too distant future. This revelation comes in the form of a PIE that dropped through my letterbox this morning. For fellow Fish not in the know this is short for 'Pension Increase Exchange'. Basically this offers to increase my pension in exchange for no future inflation increases.
This pension is from a multinational company whose advisors accurately predicted when economic upturns would occur.
 
Could it not be, in the alternative, that they think inflation is on the rise and would like to extract themselves from any index-linking they are commited to?
 
Colin Barron said:
I have it on good authority that interest rates will rise in the not too distant future. This revelation comes in the form of a PIE that dropped through my letterbox this morning. For fellow Fish not in the know this is short for 'Pension Increase Exchange'. Basically this offers to increase my pension in exchange for no future inflation increases.
This pension is from a multinational company whose advisors accurately predicted when economic upturns would occur.
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Are they any good at predicting downturns?
 
My mate worked for McVities and he was predicting the crash long before anyone else. Apparently there was a drop in sales of chocolate digestives and a corresponding increase in rich tea, and after 40 years in the business - so he tells me - biscuit sales are the biggest indicator of the state of the economy. Up until 2008 I told him he was talking shite.
 
deanf said:
My mate worked for McVities and he was predicting the crash long before anyone else. Apparently there was a drop in sales of chocolate digestives and a corresponding increase in rich tea, and after 40 years in the business - so he tells me - biscuit sales are the biggest indicator of the state of the economy. Up until 2008 I told him he was talking shite.
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Sounds like a load of hob nobs to me, or he's been at the bourbon.
 
My Mrs received one of those offers every year off ITV to get her index linked pension off the books.
She obviously turned it down and is now enjoying the pension but as she was getting these offers in years of economic stagnation and no foreseeable end to low interest I suspect it is just standard practice by any company with index linked pension schemes.
 
The timing of sending it over Christmas and new year when people are more in need of money, is i think maybe not at a time to get the most rational decisions.
 
Colin Barron said:
The timing of sending it over Christmas and new year when people are more in need of money, is i think maybe not at a time to get the most rational decisions.
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+1

At least with a payday loan there's some light at the end of the tunnel, this offer sounds like it's just cashing in on desperation.
 
gosh the amount of times I have heard interest rates will rise , then I get a fixed rate mortgage and they drop !!!
 
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