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Are you prepared for the Recession?

Auld-Yin

ADC
Kit Reviewer
Book Reviewer
Reviews Editor
The aftermath of Covid-19 is undoubtedly a Recession, probably hard, long and painful.

Are you prepared financially for this? Pension funds are going to take a hit. Those in employment will probably not see a meaningful, if any, pay rise for a few years. The Armed Forces have more than likely seen their last pay rise for a long while, indeed some joining now or just after the crisis may never see a pay rise.

All very doom and gloom but something to look to and prepare for. Yesterday at the Daily Briefing BoJo was asked about a return to austerity and said he did not want that word used! Done in a jokey way but it was clear this is very much on his mind.

Covid-19 and it's consequences ain't going to go away soon.

Happy May Day!
 
Looking around me, all those in the forces who were thinking of leaving are suddenly very quiet. It looks like their pride in being a civil servant with all the associated benefits of job security has risen tremendously...
 

Legs

ADC
Book Reviewer
It is inevitable. The financial costs of this crisis are huge. Really huge. I believe it will be a worldwide recession and no-one will be spared. From paying 80% of millions of wages, NHS costs, loss of earnings through VAT and corporation tax, loss of tourist income and the inevitable rise in unemployed people requiring benefits. The depression of the 1930s is going to look like bountiful times before we, as a global economy, recover.
 
Looking around me, all those in the forces who were thinking of leaving are suddenly very quiet. It looks like their pride in being a civil servant with all the associated benefits of job security has risen tremendously...
Some things never change. It often takes a sharp shock to make people raise their heads and have a wider look around them to realise it may not be as bad as they thought.
 
I’m confident my two Army pensions and (from September), my State Pension will give us the safety net required. I do expect the tax element to increase significantly though.
I do fear for our children and possibly grandchildren’s generation however. This will be painful and I expect a significant proportion of the population who were living a credit card and low interest or interest only mortgage existence are going to be severely savaged.
 
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It is inevitable. The financial costs of this crisis are huge. Really huge. I believe it will be a worldwide recession and no-one will be spared. From paying 80% of millions of wages, NHS costs, loss of earnings through VAT and corporation tax, loss of tourist income and the inevitable rise in unemployed people requiring benefits. The depression of the 1930s is going to look like bountiful times before we, as a global economy, recover.
I can see where you're coming from. But I'm a bit more hopeful. I believe that there may/should be pent up demand from people who have been forced to restrict spending for a couple of months.
I know that there is a lot of stuff I need to catch up on, but one things for sure, none of it will be sourced from China.
 

Auld-Yin

ADC
Kit Reviewer
Book Reviewer
Reviews Editor
It is inevitable. The financial costs of this crisis are huge. Really huge. I believe it will be a worldwide recession and no-one will be spared. From paying 80% of millions of wages, NHS costs, loss of earnings through VAT and corporation tax, loss of tourist income and the inevitable rise in unemployed people requiring benefits. The depression of the 1930s is going to look like bountiful times before we, as a global economy, recover.
What are the odds that the media will treat the Big R as a complete surprise and ask, repeatedly, why were we not warned!!!!!!
 
I can see where you're coming from. But I'm a bit more hopeful. I believe that there may/should be pent up demand from people who have been forced to restrict spending for a couple of months.
I know that there is a lot of stuff I need to catch up on, but one things for sure, none of it will be sourced from China.

I salute your intent but have reservations about practical application of that intent . . .
 
What are the odds that the media will treat the Big R as a complete surprise and ask, repeatedly, why were we not warned!!!!!!

I can imagine 'someone' on a big red sofa demanding to know why we were not prepared, why the government didn't do more, surely we should have saved some money for the aftermath and why didn't we spend more during the crisis and then something about testing for covid 19
 

tgo

War Hero
At least all countries will be in the same boat, it won't just be us so relatively we'll all be thereabouts the same.
 

DarkBrig

Old-Salt
As someone who has been risk averse since leaving just the Army so I could reach the magic 55 and Index linking, I have now resigned myself to it being moved to 60 at least. oh well where's the nearest bungie jump, lets live for todaaaaaaaaaay.
 
Looking around me, all those in the forces who were thinking of leaving are suddenly very quiet. It looks like their pride in being a civil servant with all the associated benefits of job security has risen tremendously...

I've always been happy as a Civil Servant due to the job security and interesting nature of working on a programme that is rather complex. However, I find myself wondering if we will be having another cull of CS to recoup some cash.

I've never relied upon the yearly pay increase or pay awards either so the fact all PARs have been cancelled this year, and likely won't be very good next year either, won't affect me.

I'm just happy to be employed, though I might need to revisit my career planning as I suspect it will be partly derailed in future.
 
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Company wide we're going on a four day week from June, so financially like being furloughed except we're still working four days a week

If that happens across the country that's a big drop in taxation and discretionary spending in the economy

The only bright side was changing to a ten year fixed mortgage recently, at least that won't be increasing no matter what
 

philc

LE
Its going to be a difficult call, I am itching to spend money both around the house and on a large purchase, a Campervan. For sake or argument 40K in to the economy, I am sure I wont be the only one. Money is cheap, mortgages low, now is a good time to borrow, if you can afford repayments and situation is likely not to change.

I can see new industry in the UK as we and others realise long supply chains and China are not the future, so I am optimistic, yes taxes will rise and small businesses that were rocky before are unlikely to return, a big hit on restaurants and overseas tourism, but from that increased home tourism, people buying better local food to cook at home seem to be that way forward.
 

FORMER_FYRDMAN

LE
Book Reviewer
I expect much will comeback reasonably quickly but with the notable exception of the hospitality/tourism/entertainment sectors - which is a worry because they're among the largest employers of the economically vulnerable.

Rather than return to austerity, I would expect the government to attempt to inflate away some of the debt but that's more bad news for savers and probably very bad news for those mortgaged to the hilt.

The single most effective thing the government could would be to kick start fracking in the UK, localise energy production and gain all the associated economic benefits whilst re-generating the north of England by creating real jobs.
 
I’m hoping my two Army pensions and (from September), my State Pension will give us the safety net required. I do expect the tax element to increase significantly though.
I do fear for our children and possibly grandchildren’s generation however. This will be painful and I expect a significant proportion of the population who were living a credit card and low interest or interest only mortgage existence are going to be severely savaged.
Two Army pensions?
 
Company wide we're going on a four day week from June, so financially like being furloughed except we're still working four days a week

If that happens across the country that's a big drop in taxation and discretionary spending in the economy

The only bright side was changing to a ten year fixed mortgage recently, at least that won't be increasing no matter what
I wouldn't be absolutely sure about that.
 

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