Who’s going to pay our pensions in 20-30years if the UK keeps its birth rate low and also restricts immigration?

Plus employers need to take the 65 plus not the younger candidate.

Has anyone mentioned equity release yet?
People who are asset/property rich should be able to release equity by way of an annuity, if they are struggling or have little pension, stay in their house, and live happily ever after.
Once departed, the equity release company recover their costs from the sale of the property.

There is no way the state should be subsidizing people with a £500k house because they want to leave it to their kids.

...and really, if you are saving over a decades-long time frame your pension fund shouldn't be anywhere near cash earning a paltry 4% p.a. Ideally you'll be in some sort of equity tracker with rock-bottom fees returning closer to 10% p.a. (which is the long run average return of world equity trackers). With that sort of compounding then fairly small regular contributions starting early in your career can grow to a very decent pot. And auto-enrolment very sensibly started a lot of people off down this path (or at least a path more sensible than ignoring pensions until you're 45, then saving a load in cash).

One of the problems, though, is that so many people seem to have a mortal fear of investing in the stock market, even if on a passive basis. Witness the mooted changes to cash ISA allowances - if that did nudge more people to put more of their long-term savings into equities then a lot of people would benefit in the long run, but the response to those sensible proposals was people screaming blue murder at Rachel Reeves for taking away their right to earn shite returns on £20k every year.

So I do think that inching up auto-enrolment is a key part of the long-term solution, ideally combined with getting people better educated about investing generally.

It’s the elephant in the room isn’t it. What jobs will people be doing at 65 plus? Yes there are people who can work way past this age but not everyone will be able to reach the performance levels expected.
Also many people would need shorter working hours/week and maybe even an increase in annual leave. As heath conditions start to crop up that can affect energy levels etc and people might need more recovery time.

And the majority can't do that at 20...

I’m talking about professionals on £40-80k who say they won’t be able to manage on state pension

Someone on 80k will likely be paying £250 a month into their company's pension if you include employer contributions. This does not necessarily mean they will end up with a 600k pot though..

£250 pre-tax is more like £150 post tax.

And how can you make sure it's pre tax?

Compound interest. If you are saving over 40-45 years, it adds up over time. £250 per month over 40 years is £600k, assuming 4% interest. Most people could manage £250 per month from their pre-tax income.

You think most people can spare £250 a month? 😆

But what do people do who are 40/50 years old NOW who didn’t start at 20? I was on 3.25 an hour when I was 18. I couldn’t save £250 a month! And in my 30s as self employed I unfortunately didn’t get any pay for when my parents died and I needed time off. Or needed time off for my many IVF rounds or the time off for surgery for my many miscarriages. All my spare cash went on that. So no I didn’t save much for a few years then either.
And now I don’t have 40 years to save 600k. And I’ll likely be disabled out of my job within 10 more years. So what am I meant to do if they take away the state pension? Yes I’ll happily sell my house and that can fund for a bit. But after that? Then what?

The thing is I started work 30 years ago, and actually my first full time salary was 8.5k! So I couldn't have saved £250 a month. My rent was £300. I then earned 12k, 16k and 18k before hitting about 22k and then wages started to stagnate generally. Housing in particular was cheaper but it wasnt free.

I understand a professional on 40k might be able to save 250 a month now, but I was thinking that with inflation that might look very small in 40 years time. I do understand compound interest but i don't get inflation and taxes impact on what happens.

Unfortunately it is something you need to prioritise. £250 pre-tax is more like £150 post tax. Somebody on £40k per year or so should be able to find that in the budget, even if it means a smaller house budget, a cheaper holiday, etc.

I agree somebody on NMW couldn’t, but they will likely be better off on pension credit anyway. I’m talking about professionals on £40-80k who say they won’t be able to manage on state pension.

Maybe a few years ago, yes. Now many people especially the young are living and to mouth due to student loans, rents and col rises amid wage stagnation.

Sorry, yes it was sarcasm!

Compound interest. If you are saving over 40-45 years, it adds up over time. £250 per month over 40 years is £600k, assuming 4% interest. Most people could manage £250 per month from their pre-tax income.

This is the entire point of a private pension... gotta look after yourself.

Yes I agree. But then you read these threads where you get people panicking that their pot is only worth 500k at age 30 and how they’re worried about it. And then everyone chimes in that there definitely won’t be a state pension soon so you’ll need to just work until you drop. Well quite honestly with my job I’ll be dropping sooner than most. I’ll be on disability payments. Then you get told there won’t be those either. You’ll actually just rot and starve. Unless you have children to look after you. Which I don’t.

Don’t you realise that 100% of a £1m (or £500k if unmarried) plus 60% of everything over that is the same as getting absolutely nothing!

What does this mean?

Basically you are just the same as the vast majority of the population then? I imagine most don't earn more than 40K. You have your own home which is more than a lot of people have.

People see £30 k in their pension pot and think they’ve saved well but you need to save half a million for a decent pension or any chance of early retirement. Best to start young

But realistically how can someone save this much outside of a public sector scheme?

They need to tackle the unemployment issues. I’ve got absolutely no problem with people who are so disabled that they can’t work. However, most disabled people can work. Some just choose not to and take handouts. It actually makes me sick to the stomach to fund a lifestyle like that when I’m out working everyday.

Exactly.

Is this sarcasm? Please explain!

Well not really if there is a lower birth rate

If we need say 3-4 workers per pensioner then older workers are needed

@ThisTicklishFatball you pay half your salary tax and you think IHT is 100% - who thee fuck is giving you tax advice? Get a better accountant.

People don’t have to work until 70 or whatever state pension age is, we are always told trades are a good wage, trades can invest in pensions as well you know to retire early.