UK State Pension

I consider my self quite lucky my company pensions plus the state will equate to £2100 a month when i retire.At current expenditure and being mortgage free should cover Contents and buildings insurance,Food ,Gas,Electric,Sat tv broadband,mobile,1 hol a yr and 2 city games a month wont leave an awful lot for other activities.
God only knows how you survive on just state pension.Probably make everyone work till they drop!
 
I read the other day that we are fast approaching a tipping point in terms of the pension system becoming insolvent, mainly due to the fact we are living longer and the pension burden on the working population.
Not sure of the solution, but I suspect it will be one of increase taxes or extend retirement ages or a combination of the 2.
 
Stockton Heath Blue said:
I read the other day that we are fast approaching a tipping point in terms of the pension system becoming insolvent, mainly due to the fact we are living longer and the pension burden on the working population.
Not sure of the solution, but I suspect it will be one of increase taxes or extend retirement ages or a combination of the 2.
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I can see it becoming means tested in the very near future
 
mosssideblue said:
I can see it becoming means tested in the very near future
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The problem with means testing is two fold

One you have been promised a full state pension if you work and pay your dues

Secondly if you are someone especially later in your working life who can find something to put by why would you if they will take part of your state pension off you..
 
hilts said:
The problem with means testing is two fold

One you have been promised a full state pension if you work and pay your dues

Secondly if you are someone especially later in your working life who can find something to put by why would you if they will take part of your state pension off you..
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Can't disagree with your reasoning, but we all know the curent model isn't working now and will certainly not work in the future.
No Government has sussed it yet and doub't they even want to try
 
A minimum income is the only answer, what that should be don’t know but it is more than tha state pension. Especially for couples that live of stae pension only to see income halved when one dies, without any decrease in living expenses.
 
hilts said:
The problem with means testing is two fold

One you have been promised a full state pension if you work and pay your dues

Secondly if you are someone especially later in your working life who can find something to put by why would you if they will take part of your state pension off you..
Click to expand...
I think even if they increased tax breaks for personal pensions, that wouldn't fully work as not all working people are fortunate enough to salary scarifice as they steer through life
 
The root problem is the lack of affordable housing. Just recently, I saw some **** near me advertising a room for 900 p.c.m. Granted, it's not the worst area, but it isn't Hale Barns either. Those of us with houses of our own are lucky. Those that don't, a growing cohort, are fucked. As has been pointed out, the minimum consequence is that Housing Benefit payments will soar in the future.

I think back to my grandparents. They lived in a terraced and it cost them a few shillings a week. Nowadays that house is probably worth £100k minimum (in Gorton) and the rent would likely be 500 p.c.m. Maybe more, but I'd be amazed if it was much less.

For a good 20 years, maybe more, we simply haven't been building enough houses to accommodate the growth in population and the increasing tendency to live as singletons - in part because of the financial issues around marriage and the frankly unrealistic attitudes that some people have.

Yeah, some people say we should have fewer people, but that's easier said than done, unless you're going to start bumping people off in very large numbers.

I reckon increasing state pension age to 70 is coming quite soon. And quite possibly some sort of means testing, although that's bloody unfair to anyone who has made provision for their own retirement.

I'd like to see a move to European-style state pensions that give adequate support for everyone in retirement. But be under no illusions. It would cost much more for current workers and it would not help current pensioners (or those close to retirement) as they would not have paid in enough..
 
Might end up forcing a culture change where more elderly end up living with family, it's already happening with children having to live with their parents well into their 20s or 30s. It's not looking good though, I put 10% in my work pension but I doubt it will be anywhere near what I'll actually require when I'm a foc.
 
hilts said:
It's a conundrum along with social care costs.
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Social care costs is the main contributor as to why local authorities are close to bankruptcy. I'm having an absolute nightmare with them for both of my wife's parents. The system is stacked against them imo - any savings they have count towards care home costs, but at the same time having savings precludes them from access to means tested benefits.
 
hilts said:
The problem with means testing is two fold

One you have been promised a full state pension if you work and pay your dues

Secondly if you are someone especially later in your working life who can find something to put by why would you if they will take part of your state pension off you..
Click to expand...
There would be a hell of a lot of people, me included, that would be blowing a chunk on fast cars and holidays to drop below the threshold.
 
The main problem with pensions in the private sector is the uncertainty. Yes you could be lucky and do well if the stock market does well, but it’s down to the individual to decide which funds to invest in. Should you put it in bonds and have a lower but safer return or put it in stocks and shares with a higher return but higher risk. Many people don’t have a clue and just leave it in the default fund which has immense charges which the pensions provider creams off whilst offering poor returns.

What it needs are government managed funds which can be invested in that are free of high charges.

The chances of that happening are pretty much zero however as it would make a massive hole in the pension businesses profits.

In the ideal world companies go back to providing final salary schemes but no private business wants to do that as they would be taking the risk.
 
denislawsbackheel said:
Only an utter cretin would expect to live on the state pension alone and not make some extra provision for a private pension.
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My mate is same age as me, he’s a plasterer, used to spend all his cash on clothes living a good life, bought a house ended up having kids, didn’t get married, the mother fucked off it was when the crash was, he couldn’t pay her off had to sell his house, blew £100k over the next few years. He’s now in social housing £800 a month rent, which he can afford easily, however he has zero pension, he’s got 11 years until state pension, I pointed out his state pension won’t even cover his bills, he just shrugged, he’s no idea what he’s going to do.
 
Stockton Heath Blue said:
Social care costs is the main contributor as to why local authorities are close to bankruptcy. I'm having an absolute nightmare with them for both of my wife's parents. The system is stacked against them imo - any savings they have count towards care home costs, but at the same time having savings precludes them from access to means tested benefits.
Click to expand...
Yeah and the current and previous govts literally have no answer to it all. Maybe there isn't one.
 
The answer, unpalatable as it is, is higher taxes. As a nation we have become adept at moaning constantly about the failings of the care system, the failings of the NHS, poor policing standards, ludicrously low state pensions etc etc, the answer to all of these is twofold, first increase taxes, because all these cost money and the government hasn't got enough, and two improve efficiencies (and thats a big heading covering a number of issues including but no doubt not limited to staffing levels, middle management positions, training, over-priced contracts). Basically stop wasting money and stop being a corrupt **** looking after your mates

Problem is whichever government brings in even part of these measures won't be in power shortly after, because the opposition will of course promise lower taxes blah blah blah, and so we go round and round in circles.

For decades the fat has been trimmed from government provided services, easy cuts which might cause a few grumbles but nothing of note, eventually there was none of this low hanging fruit (apologies for the mixed metaphors) left and cuts were made in more essential services, people started to notice, satisfaction levels went through the floor, but any mention of increased taxation is met with pitchforks and flaming torches by the masses, myself included for many years I'll admit.

Means testing of the state pension MAY happen one day, but it HAS to be decades in the future, because anyone currently working will (assuming they have a plan of any description for their retirement) have factored in the SP. People in their 20's may have time to do something about it, people in their 30's...maybe not, people over 40 pretty much no chance. Obviously a small percentage, those in very highly paid jobs, sit outside these broad statements.
 
Scottyboi said:
Might end up forcing a culture change where more elderly end up living with family, it's already happening with children having to live with their parents well into their 20s or 30s. It's not looking good though, I put 10% in my work pension but I doubt it will be anywhere near what I'll actually require when I'm a foc.
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When? :-)
 
Kompany Car said:
The main problem with pensions in the private sector is the uncertainty. Yes you could be lucky and do well if the stock market does well, but it’s down to the individual to decide which funds to invest in. Should you put it in bonds and have a lower but safer return or put it in stocks and shares with a higher return but higher risk. Many people don’t have a clue and just leave it in the default fund which has immense charges which the pensions provider creams off whilst offering poor returns.

What it needs are government managed funds which can be invested in that are free of high charges.

The chances of that happening are pretty much zero however as it would make a massive hole in the pension businesses profits.

In the ideal world companies go back to providing final salary schemes but no private business wants to do that as they would be taking the risk.
Click to expand...
Am I right in thinking the Government don’t invest NI contributions to potentially improve the available money, but simply pay pensions from the tax kitty?
 
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