Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[Rog]

Articles like this make me laugh, they bring to mind the expectation that many in the state sector and big corporate world have of a "final salary" pension. I find it very odd that a person can expect to earn the same when they are retired and non-productive, as they did when they were working.

http://www.bbc.co.uk/news/business-27441009

I have no idea what my income will be after retirement in a few years. Somewhere between £15k and £40k as in the article would be nice, but . . . . . I wonder if whoever wrote the article was a financial advisor ?

I'm sure Rods2 will have something to say   

[Varche]

I read that too.

The thing is that the governments of the day have been banging on long enough now about everyone should be saving towards a private pension (to save the state having to give OAP's a decent pension). There can't be anyone who isn't saving for their future unless they have taken a conscious decision not to.

By the way Britain is one of the richest countries on the planet and in the EU but has the worst state pension level of any EU country. Not good after people have worked all their lives and paid taxes- then to be means tested to get extra handouts to survive..

[Entwood]

I read that too.

The thing is that the governments of the day have been banging on long enough now about everyone should be saving towards a private pension (to save the state having to give OAP's a decent pension). There can't be anyone who isn't saving for their future unless they have taken a conscious decision not to.

By the way Britain is one of the richest countries on the planet and in the EU but has the worst state pension level of any EU country. Not good after people have worked all their lives and paid taxes- then to be means tested to get extra handouts to survive..

An accurate statement as far as it goes, but nicely hides some important facts that need to be considered if an HONEST approach is taken ...   

Just to throw in a few points ....   free eye tests, free prescriptions, free hearing tests, free NHS treatment that can include glasses, hearing aids and numerous "disability aids". "Meals on wheels" and other social support for those elderly who live at home  etc etc etc ....

All of which are CHARGED FOR in the other countries of the EU ... AFAIK ..

Lets at least compare apples with apples ? .. and not apples with cabbages  

[TheBoy]

If only I could afford to retire now...  ...I wouldn't even bother going in to crap on the boss's desk.

Sadly, like many others from my generation, I expect to work to 70 

[Sir Tigger KC]

If only I could afford to retire now...  ...I wouldn't even bother going in to crap on the boss's desk.

Sadly, like many others from my generation, I expect to work till I drop! 

Fixed that for you TB. 

[Field Marshal Dr. Opti]

I don't have a pension.

Too late now.

[TheBoy]

If only I could afford to retire now...  ...I wouldn't even bother going in to crap on the boss's desk.

Sadly, like many others from my generation, I expect to work till I drop! 

Fixed that for you TB. 

Well, true...

[LC0112G]

Not good after people have worked all their lives and paid taxes...

and consistently voted in governments who have pi55ed all that tax money up the wall. There is NO government "state pension fund". It's all payed out of current taxation/NI contributions. The "I've payed in all my life" argument just reveals people don't understand what they're been paying for and how the state pension works. The proportion of people working vs pensioners is decreasing - so fewer people are paying more to fund more pensioners. And those tax payers are the graduates of this generation who have had their university fees increased by the people who now demand their state pensions. There is trouble brewing.

The facts are that from here on the state pension can only ever be at or just above subsistence level. If you want to live on this (approx £7500 a year) in your retirement (which won't be till age 70 BTW!), then that's your choice. If not you must make plans to set aside enough money during your working life to fund your expectations. To get £15K in retirement you need to have saved a pension pot to pay out the additional £7500. That means a pot of at least £150K. If you want to retire on £20Kpa at age 55, then your pot needs to be more like £600K.

The govenment plans a good, but don't go far enough. Rule of thumb is that you need to put in half your age when you start saving as a percentage of your earning. If you start at 20, that means 10% of earnings. If you start at age 40, then 20%.  The current govenment legislation is currently only 8%. Better than nothing, but not enough.

[Rods2]

We had the best funded pensions until 1997, when Gordon McRuin decided a £7bn a year tax grab wouldn't be missed, so pensions have lost income and growth since then which adds up to about £200bn or upwards of £10,000 per pensioner, which the governments have just pissed away and we now have the worst funded in Europe.

The is why McRuin introduced workplace pensions, where he had stolen the legacy that people expected from their investments, not only in this tax grab, but also his disastrous economic policies. The workplace pensions won't provide an adequate pension for the vast majority.

Best thing I did was opting out of Serps as it was progressively neutered and finally scrapped as part of the minimum £140 per week this government, so at least I got an invested lump of money from this. The worst thing I did was invest a lot of money over the years into a pension, to see a large percentage disappear in real terms over the last 15 years, the only people that have done well have been financial crooks advisers with their commissions and fees. I did look in the early 1990's at buy to let and should have gone that route I would have been much better off.

Biggest lesson to me is invest tax paid money, so you are in control and if necessary you can move it outside of the reach of the bunch of crooks in Westminster.

[ronnyd]

I did the opposite to you Rods, when my firm closed their final salary scheme and went for a 'money purchase' instead
i decided to stay in Serps. My state pension now pays me more than i was getting before i retired. I also have a small
private pension which isn,t a lot but helps top up the state one. Swings and roundabouts i suppose.

[aaronjb]

Pension? I'll be lucky if they don't wheel me away from my desk and straight into the casket..

[Rog]

Unless you are really stinking rich, I suppose the real answer is not to have any cash or savings, and not to have any job or idependant income, and not to own property. The state will then cough up and support you for life.

[Varche]

I agree with you Rog.

The middle of the road is no choice as (has been the case with so many relatives) having a small private pension on top of your state pension bars you from all kinds of state relief.

So in my view you either

Spend all your surplus money while you can enjoy it and hope that by state retirement age there will be a safety net still

OR

Invest heavily every year and hope you live long enough after retirement to enjoy it. 

[Field Marshal Dr. Opti]

Unless you are really stinking rich, I suppose the real answer is not to have any cash or savings, and not to have any job or idependant income, and not to own property. The state will then cough up and support you for life.

Yes, Rog.......but not very well. You won't be living the high life that's for sure.

[Stemo]

Unless you are really stinking rich, I suppose the real answer is not to have any cash or savings, and not to have any job or idependant income, and not to own property. The state will then cough up and support you for life.

Yes, Rog.......but not very well. You won't be living the high life that's for sure.

Won't make any difference to you, unless you give up the drink and drugs.