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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

State pension

236 replies

Brexitstolemyfuture · 19/07/2017 22:35

People are being lied to about their chances of ever getting it imo. So they are going to raise it another year. I'm still 25+ years off it. Aibu to think I'll never get it?

OP posts:
squishysquirmy · 20/07/2017 21:49

Sorry WhichJob. If he is financially abusive, the stuff I mentioned is useless. Sad I was assuming she had a partner who would agree to pay money into a private pension/ISA for her, but that only works if her husband is fair with the family finances.

stopfuckingshoutingatme · 20/07/2017 22:05

I am so tired how am I gonna be in my 60s!!!

Seriously they need to make us a nice euthanasia drug or something as not looking forward to getting older

Original poster
Brexitstolemyfuture · 20/07/2017 22:14

The people I were saying that deserve to live in poverty obviously was this type

I know of one person with a decent final salary pension who is going to retire early (50), cash it all in, have enough spending money to do the outdoor type stuff he wants while he's still relatively fit, and then rock up to 67 without a penny and with his hand out.

OP posts:
WhichJob · 20/07/2017 22:14

Squishy, it was a reasonable assumption. I might still mention the options to her to flag it in case it spurs her on to get a fairer deal/leave him.

squishysquirmy · 20/07/2017 22:34

Brexit he sounds like a right tit, and may well find that throwing himself on the mercy of the state is not quite as fun as he thinks!

Original poster
Brexitstolemyfuture · 20/07/2017 22:40

A agree a selfish and stupid tit at that. Might end up in a grotty b and b sharing a bathroom with 5 quid a day to live on.

OP posts:
squishysquirmy · 20/07/2017 22:45

...And even if he didn't, and he gets lucky and everything works out well for him it still wouldn't make it a smart thing to do. If you saw someone jump off a building, and miraculously escape unscathed, you wouldn't go around recommending others try it would you?

brasty · 21/07/2017 00:22

I am in my mid 50s and have saved for a private pension. But without a state pension, it would not be worth happening. It is a top up only.

user1492287253 · 21/07/2017 08:05

i agree brasty. my dh will get the 155 a week and me about 135 due to my contracted out bit. my 2 employers pensions will give me about 10k a year but without the state part we would be in dire straights

Code42 · 21/07/2017 08:30

I was confused over the dates, so I already thought I was in the 68 group. That said, I've always assumed the state pension would no longer be around when I retired. Possibly that was because, when I asked my parents' accountant if I should make up my NI contributions when I was working abroad (stipendiary, not salaried) in my 20s, he told me not to, on these grounds, and that seven hundred quid or whatever it was then would be better in my pocket.

State pensions are essentially a giant Ponzi scheme that would see you doing serious jail time if you tried to emulate it. But - there's no money and national debt people younger than me's grandchildren will still be paying off: what to do?

OhTheRoses · 21/07/2017 08:32

Have checked the government gateway. As of now have accrued £149 and have two years to go if I include this tax year. I am a year missing and know I worked and contributed that year but I don't have the P60. Shredded them when we moved.

It shouldn't make much difference and I should get £155. As should DH.

Had a chat to DH about his pension. He has a couple of small plans that will pay about as much as my occupational pension. He is also about to embark on a salaried, pensionable role for the first time in his career. I also did an LGPS forecast yesterday and was pleasantly surprised. My transfer in bought me 14 years and I have been going again since 2003 which is another 13 years (first two part time). It is better than I thought.

Paradoxically I can't imagine retiring at 60. Neither can DH.

squishysquirmy · 21/07/2017 09:03

brasty I'm not denying that for many people, private savings/pension will only provide a small top up to the state pension. But, with decades to retire, I don't know what will happen to the state pension by the time I get there. If the state pension is still adequate for living expenses, a small income from a private pension may make the difference between basic living and being able to buy the occasional treat (even if that treat is a just weekly/monthly coffee out.) If the state pension offered then is less than now (I suspect it will be), a tiny top up from a private pension might make the difference between beans on toast, or beans on toast and cheese. Or it might pay for me to keep the heating on that little bit longer in the winter. Or pay for the milk in my tea. I am hoping to save enough in my private pension to allow me a good retirement income. But if I can't, I still think that whatever I can save will be better than nothing.

aliceinwanderland · 21/07/2017 09:20

I think you are right squishy. When you are living on £900 a month £50 top up makes a big difference. Much less so when you are living on £2000 per month

LadyBitterSparkles · 21/07/2017 10:22

I'm going on a long cruise when I need to go into sheltered accommodation. Apparently the cost of paying for a cruise is much cheaper. And probably a lot more fun.

LadyBitterSparkles · 21/07/2017 10:22

That's assuming I'll have saved enough in the meantime, which is unlikely. But it's nice to dream.

Belindabelle · 21/07/2017 11:01

The state pension is 159.55 per week which equates to 8296.60 per year. Assuming DH and I are still together that will give 16.5k. Between us we have 3 occupational pensions which should be worth around 10.5K in total. Obviously this is just based on current projections. Who knows how much the state pension will be by then.

We also have some savings and investments, hopefully we can add to these once our mortgage is paid off and the children are gone . Though who knows when that will be. We plan to downsize to free up some equity too. We may use this to buy an annuity to provide a little more income or just stuff in under the mattress.

Nothing is certain but I feel better for having some sort of plan. If they bring in means testing I may be bitter but I think on balance it is worth having some control rather than just not saving and hoping for the best.

OhTheRoses · 21/07/2017 12:11

I was told I was a boring fart by the way throughout my 20s. Possibly not such a boring fart by my mid 60s.

brasty · 21/07/2017 12:23

This is why I have paid into a private pension for 35 years, even though at times my wages have been very low. Because I always saw it as a top up to a state pension. I know the state pension is not high, but I can live on it. I always saw the top up private pension as paying for extras, from house repairs, and clothes, to actually getting out and having some fun.

For most people like me where you were automatically opted out of part of state pension, I will get £6029. Note for younger people you will actually get a higher state pension. My partner will get the same. My partners private pension is worth about £3500 a year on retirement age. I will get about £5200 a year. This will make life fine for us, but the private pensions need to be top ups,not instead of.

squishysquirmy · 21/07/2017 12:28

"If they bring in means testing I may be bitter but I think on balance it is worth having some control rather than just not saving and hoping for the best."

Exactly. I'd rather be bitter, but able to eat, than be wrong the other way and end up with no savings and a pittance of a state pension/nothing and desperately poor in my old age.
Extra savings will make it easier to retire/go part time/switch to a less physically demanding job before the official state pension age as well.

brasty · 21/07/2017 12:30

Please note as said above, younger people will get higher levels of state pension, than people like me in my mid 50s. The state pension rate has just gone up.

OhTheRoses · 21/07/2017 12:36

I'm not sure I agree It's a top up Brasty. For me it would mean my lifestyle could be maintained. (If it weren't for DH). My combined occupational and state pensions will be about £30k if I keep working until 65.

squishysquirmy · 21/07/2017 13:00

That depends on how much someone is able to pay into a private pension though, doesn't it Roses?

I am hoping to be in a position where my private pension and savings will give me a good lifestyle when I retire.
But, if I couldn't afford to pay very much into a private pension, I would still save whatever I could, even if that amount was just £5 a month, because a top up is better than nothing.

brasty · 21/07/2017 13:54

Maintain your lifestyle is a very different goal to, surviving and having some money to top up to improve your lifestyle.

FlowerFairyLights · 21/07/2017 13:57

Wow oh!! That will be a much better lifestyle than I've managed pre retirement!

squishysquirmy · 21/07/2017 22:00

You're right, brasty it is a different goal.
Not everyone has the same ability to save, some people are struggling to survive day to day without going into debt. Just because one person is not doing as well as someone else, does not mean that they aren't doing the best they can. I would advise everyone to save IF they can though - even if its only a very small amount (but NOT IN CASH).

FlowerFairyLights : Try not to get too discouraged. Situations can change drastically over time, and I hope that eventually you will be able to afford more than you can now. Some of the speculations about future pensions I made up thread were "worst case scenario", I don't really expect it to be that bad.