UK State Pension

Mr Kobayashi said:
forums.bluemoon-mcfc.co.uk

The Labour Government

One thing I hope Labour bring in is PR. Now I voted Labour but admit they fluked a huge majority on the basis of voters being very pissed off and in effect choosing “none of the above”. Unless they want to hand over to a ragtag of chancers and conmen aka Reform and the Tories, they need to...
forums.bluemoon-mcfc.co.uk forums.bluemoon-mcfc.co.uk
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You do understand the difference between a question and a belief?
 
hampshireblue said:
Does the annual pension get enhanced if you don't take the TFC?
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At the age of 55 it becomes index linked, so if you say retire at 50 then at 55 you get all the rises in one hit, last year I got a 12% rise. Obviously I don’t take the TFC my monthly is a lot more and the subsequent rise but I could’ve died in those 2 years! I took mine paid off my mortgage plus you can also take another amount above that which is taxed, again I took that, rather than say an extra £100 a month, it would’ve took about 10 years to get that back. Of course if I had crystal ball and knew I’d live to say 80 then I wouldn’t have took the second part but who knows!
 
Mr Kobayashi said:
You didn't reply to say you didn't believe it.

The ambiguity leaned in towards the fact that you did.

Should I assume you dont because you do understand why 24k isn't sustainable?
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I understand the state pension on its own is totally insufficient and, there are plenty who have only that alone to live on. I made the comparison to min wage as that is what the Government decree as being minimum to live on yet they expect pensioners to exist on much less.

Yes, there will be outliers with pensioners being comfortably off, but my argument was aimed at those who aren’t, and there are millions of those
 
mosssideblue said:
I understand the state pension on its own is totally insufficient and, there are plenty who have only that alone to live on. I made the comparison to min wage as that is what the Government decree as being minimum to live on yet they expect pensioners to exist on much less.

Yes, there will be outliers with pensioners being comfortably off, but my argument was aimed at those who aren’t, and there are millions of those
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Accommodation costs.

Majority of Pensioners own their own home.

Do you think the majority of people earning nmw own their own homes?
 
mosssideblue said:
No and you have admitted not all pensioners do too
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Well of course not. That would have been a stupid point to make.

In 2022–23, around 74% of pensioners in the UK owned their home without a mortgage. This is an increase from 56% in 1993.

  • Home ownership with a mortgage: Around 4% of pensioners owned their home with a mortgage
  • Social renters: Around 17% of pensioners were social renters
  • Private renters: Around 5% of pensioners were private renters

Is it even worth comparing those stats with working aged people under 40?
 
Mr Kobayashi said:
Well of course not. That would have been a stupid point to make.

In 2022–23, around 74% of pensioners in the UK owned their home without a mortgage. This is an increase from 56% in 1993.

  • Home ownership with a mortgage: Around 4% of pensioners owned their home with a mortgage
  • Social renters: Around 17% of pensioners were social renters
  • Private renters: Around 5% of pensioners were private renters

Is it even worth comparing those stats with working aged people under 40?
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Being rent or mortgage free and only receiving state pension doesn’t not make life easy. Heating costs are huge and if they have no savings, replacing white goods or a defective boiler is beyond them.

There are outliers on both sides of our debate, but I would like to think you would agree there are millions of UK pensioners who are simply existing, not living.

What the answer is will spawn lots of ideas which we have seen on here, but ultimately what we say or think is irrelevant, it’s down to Government action to address, which imo, it hasn’t and probably won’t
 
mosssideblue said:
Being rent or mortgage free and only receiving state pension doesn’t not make life easy. Heating costs are huge and if they have no savings, replacing white goods or a defective boiler is beyond them.

There are outliers on both sides of our debate, but I would like to think you would agree there are millions of UK pensioners who are simply existing, not living.

What the answer is will spawn lots of ideas which we have seen on here, but ultimately what we say or think is irrelevant, it’s down to Government action to address, which imo, it hasn’t and probably won’t
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Neither of those are pensioner specific issues.

Energy costs are too high across the board.

But WFA was never the solution, we need to produce cheaper Energy and stop letting private enterprise take the piss in this sector.

Do you not think someone on nmw might struggle to replace white goods?
 
Mr Kobayashi said:
Neither of those are pensioner specific issues.

Energy costs are too high across the board.

But WFA was never the solution, we need to produce cheaper Energy and stop letting private enterprise take the piss in this sector.

Do you not think someone on nmw might struggle to replace white goods?
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Going around in circles, you think pensioners get a fair whack, I don’t. Let’s leave it there
 
My cousin lives near Southampton. Apparently there's been a massive uptake by pensioners for one bed flats(probably down sizing) in the City. They are then taking advantage of last minute cruise deals to go away. Quite sensible if they can afford it.
 
Pensioners are as diverse in terms of wealth and income as working age people and in discussing such things we do run the risk of grouping pensioners into one single pot.

Some have more than enough, I look at one of my neighbours, both ex headteachers at large secondary schools who seem to have more money than they know what to do with, off on long holidays to very expensive destinations, built a large extension on their already big house and pay their kids an allowance every month. Neither of them came from wealthy backgrounds or had big inheritances. Good on them, they worked in senior positions, built up a good pension within the scheme available and on the surface seem to have a great life.

Others like my mum for instance have the old state pension and a small amount from my dad's final salary and whilst not rich, she gets by because the house is paid off. If she was living in rented accommodation her situation however would be much worse.
 
dickie davies said:
I assume you had a private pension and you took the 25% tax free lump sum allowance
What @mosssideblue is saying is that instead of taking the lump sum, you drawdown on the tax free part and take it in monthly installments
I'll try and find a youtube video that explains it

Edit
Here it is
Watch it from 6 mins 30

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Yes I did. When I became ill and left immobile, we needed to build an extension with a downstairs bedroom & wet room for me. I didn’t just spend it on ‘a good time’. Apologies, I misunderstood what @mosssideblue was saying. Of course he’s right, the first 25% is tax free
 
Kompany Car said:
Pensioners are as diverse in terms of wealth and income as working age people and in discussing such things we do run the risk of grouping pensioners into one single pot.

Some have more than enough, I look at one of my neighbours, both ex headteachers at large secondary schools who seem to have more money than they know what to do with, off on long holidays to very expensive destinations, built a large extension on their already big house and pay their kids an allowance every month. Neither of them came from wealthy backgrounds or had big inheritances. Good on them, they worked in senior positions, built up a good pension within the scheme available and on the surface seem to have a great life.

Others like my mum for instance have the old state pension and a small amount from my dad's final salary and whilst not rich, she gets by because the house is paid off. If she was living in rented accommodation her situation however would be much worse.
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Agreed. Both have done a lifetime of public service.

They have earned that standard of living.
 
Kompany Car said:
Pensioners are as diverse in terms of wealth and income as working age people and in discussing such things we do run the risk of grouping pensioners into one single pot.

Some have more than enough, I look at one of my neighbours, both ex headteachers at large secondary schools who seem to have more money than they know what to do with, off on long holidays to very expensive destinations, built a large extension on their already big house and pay their kids an allowance every month. Neither of them came from wealthy backgrounds or had big inheritances. Good on them, they worked in senior positions, built up a good pension within the scheme available and on the surface seem to have a great life.

Others like my mum for instance have the old state pension and a small amount from my dad's final salary and whilst not rich, she gets by because the house is paid off. If she was living in rented accommodation her situation however would be much worse.
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Not sure if it applies to your mum but usually when one pensioner dies the surviving pensioner can clame about 70 percent plus of their dead partners pension.
 
Kompany Car said:
Pensioners are as diverse in terms of wealth and income as working age people and in discussing such things we do run the risk of grouping pensioners into one single pot.

Some have more than enough, I look at one of my neighbours, both ex headteachers at large secondary schools who seem to have more money than they know what to do with, off on long holidays to very expensive destinations, built a large extension on their already big house and pay their kids an allowance every month. Neither of them came from wealthy backgrounds or had big inheritances. Good on them, they worked in senior positions, built up a good pension within the scheme available and on the surface seem to have a great life.

Others like my mum for instance have the old state pension and a small amount from my dad's final salary and whilst not rich, she gets by because the house is paid off. If she was living in rented accommodation her situation however would be much worse.
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That is it in a nutshell. We are not a one size fits all Society. Inherited wealth tends to go to those within the same social strata. A lot of us come from a time where most have more wealth than our parents through employment opportunities. We are now in an era where it is very difficult for todays children to become wealthier than their parents because of the cost of even getting on the housing ladder and due to medical advancements their parents live longer so the kids are going to be middle aged before they see any inheritance from their parents .
 
levets said:
Yes I did. When I became ill and left immobile, we needed to build an extension with a downstairs bedroom & wet room for me. I didn’t just spend it on ‘a good time’. Apologies, I misunderstood what @mosssideblue was saying. Of course he’s right, the first 25% is tax free
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And very obviously you did the correct thing as you needed the lump sum immediately
I'm 62 and thinking of retirement next year and at the moment the slow drawdown looks to be my best option
I need to take proper advice, but my schoolboy figures say that over a period of 9 years, I could be £60k better off
 
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