Is anyone going to be living just on state pension when they retire?

[Shinyseas]

It looks like I will be. Never really earned enough to put money aside for a pension, married someone who was terrible with money and at the age of 51, have youngish DC so even though I’m earning better money now, I’ve got to get them through teenage years, then off to Uni. All feels too late to save anything decent. I’ll be early 60s before my youngest leaves home.

When I checked this week, my private pension is set to give me 1.5k a year 🙁

People do survive on the state pension I know - but it must be very very tight.

@kitcat15 I don’t do any of this and I work full time - simply can’t afford too.
@Standrews yes, my private pension and second state pension will be the same. Not helped by several government tax raids on the former. Due to the rising cost of living, I’ve stopped paying in. Feels very much like a triple taxation system rather than a savings pot - taxed on earnings, tax raid on the pension lot and taxes again when in receipt of the paltry pension. At least if I save it myself I only get taxes once.

I certainly could not live on even double the state pension and enjoy the live I would want to

Yes living on state pension is a very basic life indeed. I didn't ever mean to imply otherwise. But I think people wonder if they will literally starve which must be worrying and I don't think that is the case.

With regard to the age of workers, I have had deliveries from people easily over 70 and I feel for them. Its a physical and pressured job. The change to pension age is a huge one and totally disproportionate to increased longevity and health when comparing the women getting their pension since they were 60 and that of us who will be 67/68. I have been trying to work out how I manage because I cannot foresee doing my current job full time until I am 67.

I'm not sure where all the jobs are for the 60+ workers, it looks like most of us are planning on working but what happens when our heath is nit as good as it is now?
Those of us who own home will need to factor in the cost of maintenance,that if its replacement heating, roof is going to cost more than a year's pension.
And in lots of cases who is going to care for the elderly parents/ people with disability who rely on family help / grandkids if we are working till almost death then the state cost is going to massively increase.
It is a false economy to keep on increasing the state pension age.
Pension needs to be ringfenced to stop the govetment dipping in & yes we do need to pay more as part of out taxes.

There's a few where I work in the manufacturing industry.

Yes we have several people at work on adjusted duties because they're no longer able to do the job they were employed for and they all have 5 - 10 years to retirement. It must be miserable for them.

@HandlebarLadyTash maintaining my house is impossible as it is. Someone upthread described an elderly neighbor who has been unable to put his fencing back up after the storms and I was thinking that is my situation now. Definitely something to consider in retirement.

I didn't know that about long term sick leave but it makes sense.

@lameasahorse no one. But if we are all sick or incapable, the problem of pensions and how to pay them/afford them/live on them is self solving- as a lot of will simply die slightly earlier than scientist predicted.

Argh. A lot of US and scientists. (Weeps for the missed opportunity of an edit function)

At my workplace everyone has to be able to lift 10kg. The building is Georgian so that
means lots of stairs. The shop is on the ground floor and the stock rooms are in the basement and a mezzanine cupboard around 8ft by 10ft between the ground and first floors. The first and second levels are offices which we sometimes need to up to and above that is a hidden third floor. The third floor would likely have been servants rooms when the building was a house but now known as the gods it contains two further offices and a bed sit incase anyone staying for a meeting needs to stay over. All of us that work there are between 20 and 60 years old but I dread to think what will happen as we get older as many may not manage the physical demands.

Not entirely sure I correctly understood the government advice lady but she said if I defer, I would get arrears in one go for any full deferred past year (with some interest I think?) but the increase would only be for deferred amount in the current year, after which it all becomes the same as everyone else.

@PlainJaneEyre

But those figures you have quoted sound like they are a largish house - my 2 bed terrace is £107 council tax and I pay £97 electricity & gas with 3 people living here - would it not be the case that you need to downsize before this point to reduce those costs?

I pay £97 electricity & gas with 3 people living here

But surely that is going to massively increase.

I think the minimum threshold need's to rise for pensioner's And worker's. Not sure what to but currently whilst it's so much better at 12 500 it's not enough.

Pensioner should not be taxed until higher amounts.

Pensioners get the same tax free allowance as everyone else.

Yes I like the idea that pensions should be higher but where's the money going to come from?
Younger people are struggling financially enough as it is without adding more tax.

It's really doable and I can save a decent amount every year. It all depends on your outgoings and your needs. If you drink, smoke, like takeways, Sky, 3 holidays a year, running two cars and buying into a new iPhone contract every year then perhaps not.

I retired at 68 and 8 months. As I hadn't been given the option of receiving or deferring my state pension the DWP sent a letter saying they would visit me the following week but didn't tell me why and at that point, I had no idea it was to do with my pension as I was still working.
Their computers randomly pick out NI numbers (a bit like Ernie) to be scrutinised to check that all is in order.
Mine was one such number and as they hadn't offered options I could either take a lump sum and normal pension or a higher pension.
It was a highish 5 figure sum which included interest at 8%.
I took that option and invested it which has, in the past, been very beneficial. Not so much now with low interest rates. The great thing was that it was tax free. I haven't needed to spend any of the capital and manage very well on my state pension.

Blossomtoes alphabet1spaghetti2 and ClaudiusTheGod Burpham Sainsburys and she has friends in Godalming store and b&q Guildford and the Godalming Waitrose has a lovely chap who is also in his 80's that they fancy!!. Just because they don't have white hair and a zimmer doesn't mean they aren't in their 80's. If you look closely you will find them but you need to actually look at the people who serve you.

I moved house ready for pension date, downsized & bought cash in a lesser area. Newish house too, less maintenence than my big old cottage. Much wamer & lots less outgoings. Sounds like I have lots of money, I don't! New house was just over 100K. Much happier.

The entire system is a false economy though. Fiat currency, inevitable crash.

Pensioner should not be taxed until higher amounts

Of course we should. Money’s money, if you have an income over the threshold you should pay tax on it, regardless of its source.

Why should pensioners Tax free allowance be higher than workers?

Workers, younger people are more likely to be paying off student loans etc. And also going to work actually costs money. How many people have saved money during the last two years by not eating takeaway lunch and saved money on travel costs, fuel, parking, bus, rail fares etc?

If anything it should be the other way round working people should get an increased tax allowance for travel etc.

Remember being in work 'ecomonically active' generates work for other people, ie the person who serves you in the petrol station, the bus driver and cleaner, the people who work in the takeaway shop.