State pension

[Brexitstolemyfuture]

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?

I feel very strongly that if from the very beginning you save 10%. My first pay packet was £380 com and I put £40 pcm into a savings account immediately so never had it on the spending budget. If you do that then it is incorporated and never missed.

I agree that taking a contribution straight out of pay is a good saving habit, and you stop counting on that money. But if you have cut back everything you can and still struggle to live within your budget, it is not possible to save 10%. I am a bit evangelical about saving, but it doesn't make sense if someone goes into debt in order to maintain a pension contribution. I also think its good to build up a small cash buffer first, and then start locking away long term savings.

Could anyone advise me. I Monday 41 and I have been employed by the NHS for 16 years and have paid into the work pension. I am now looking for a job in childrens social care. If i left does my NHS pension freeze where it is and I will get whatever I have paid in until now? Can I continue to pay in? Or does a new one start with the council? Then when I retire I get 2 occupation pensions or just one?

Thanks

I am 41, not I Monday

How much do you need in your private pension pot to retire at 65 for annual return of £20000? Just trying to work out how much I need to save

chocolatespider, phone the relevant pension folk. Here are two sites. The second is probably the better one:

www.gov.uk/government/collections/nhs-pensions

www.nhsbsa.nhs.uk/nhs-pensions

Not only do I think the state pension will be obviously gone, I think the private pension schemes which we are paying in to are going to collapse before I reach pension age.

I totally agree CaptainMarvelDanvers, everything is on a knife edge.

Captain Some of the final salary pensions schemes probably will, and may have to be bailed out by the treasury.
FSP and similar are very rarely offered any more though.
I think that contribution based schemes are much less likely to collapse in the same way, because normally you are effectively buying into the stock market. You are not guaranteed a certain amount, unlike FSP schemes. The value of your pension will go up and down over your working life, but the overall trend should be up. As you approach retirement age, the balance of investments should be shifted from riskier stocks towards safer bonds etc, so you're not too exposed if there is a crash just before you retire.
(That's my understanding of it, anyway but someone please correct me if I've got it arse about face!)

Current pensioners annoy me! Well the ones with their final salary pensions that retired at 60, live in a big fancy house have umpteen holidays a year, voted for Brexit etc.
And get fuel allowance, free prescription, bus pass etc etc.
We will never get any of that.
And they get to keep it all because they vote Tory and the stories are scared of them.

My mum & dad for instance realises how lucky she is to have new born just after the war.

My inlaws are 'poor' pensioners............

Ps I do want help to go to those pensioners who genuinely need it and I do believe everyone should get a state pension. Just get annoyed that we are paying for a lifestyle we will never be able to afford

Chocolate, I think you will join the new employers scheme, and thus receive 2 occupational pensions. You can ask for a forecast of what you are likely to receive from your NHS pension. I wouldn't cash it in though, although the govt keep making unfair changes to it, it's still currently a pretty good scheme

The people I know who are in the best pensions schemes, are in final salary private schemes.

To have a private pension of £20,000 a year, you need to have a final pension pot of £400,000.

LuckyMummy everything DH and I will have will have been funded by us.

The pensions DH's parents have were funded by them. Both worked fulltime. DIL from 15.

My mother inherited but has worked for much of her life. She has had not one penny from the state and would have inherited a whole lot more had it not been for punitive death duties in the late 70s.

My grandparents were farmers. My grandmother ran the farm from 1940-45 when my grandfather fought in the war. There was no NHS then. No welfare state.

DH'S grandfather was sent down the mine at 14. He left to become a soldier on his 18th birthday and served until 1947.

Nobody in my family has had a benefit or tax credit, except for universal ones and believe me my family has funded benefits in spades.

You have certainly not paid one penny towards my family's baby booming gravy days.

In 1978 hardly anyone went to university, over the next twelve years interest rates hit 12% regularly, there were no tax credits and marginal rates of taxation were 60%.

Neither DH nor I have ever been out of work, we have saved and funded pensions and life insurance so we are and never will be beholden to anyone.

If you really think you have paid a single penny to fund our lifestyle or future you are gravely mistaken.

My advice to you is to deal with the chip on your shoulder, get your head down and graft and stop being jealous of other people who have gone through and contributed a great deal more than you ever will.

Lloyd, currenlty if you have £100,000 saved up in a pension that will buy you £5,000 not inflation proofed and before tax at age about 65. (Of course if you put 100k in now and have 30 years to retirement it will grow over that time and buy more annuity if the fund does well although inflaton will make it all worth less).

So if you want 20k and were about my age (older than you) you would want about £400,000 in there to have a before tax £20k income - private and state pensions are taxed like any other income (but no national insurance on them).

No chip here. But I do think certain things should be means tested - like Winter Fuel Allowance and Bus passes.

I don't know why the government always protect these things.

Child Benefit is now means tested so why not other things?

Yes inflation was high in 78 but wages went up and houses were nowhere near as expensive as they are now.

In fact my husband and I are actively saving for our pension. but no way will we ever be able to afford to retire at a similar age to our parents even though we're earning a lot more.

And my children - well they'll be even worse off than I am. And that does really worry me. I will do everything I can to help them.

But when you have got 60 + year olds paying higher tax on their pensions yet getting £400 a year fuel allowance, then yes I find that unfair.

It costs more to means test than to provide a universal rate. How sad it bothers you that a couple in their 70s might get £400 winter fuel allowance and a free bus pass. A bus pass that might keep a car off the streets and be good for the environment.

I take it too that your overprivileged parents won't be leaving you anything to soften your life and in turn your children's.

How sad you feel your dc will be worse off than you. Mine aren't. DS graduated yesterday. He has a wonderful future ahead of him and huge security. His father, b1961. Had nada, zilch, nothing when be graduated from the same university. His father is significantly better off than his parents. My mother is not better off than her parents although she was born in 1936 but that's because she is feckless and extravagant and never saved for a pension.

Another issue for my generation is divorce. My mum inherited from her parents, not much, just a modest house, but still she inherited the house. As my parents divorced, their house went/goes to their new spouses and then out of the family. It is what it is, but it is another impact of the changing lifestyles of the baby boomer generation.

No I don't really grudge them it. But when we have young families in fuel poverty and others going 3 holidays a year and getting £400 winter fuel allowance then yes I think that's just a bit unfair.

i'm glad my parents and inlaws are comfortable. And I think they deserve a few years of retirement. And I hope it is very many years.

But I very much doubt that I will be retired at 70 or get a fuel allowance at all.

And I doubt my kids will be able to retire before they are 75 at the earliest.

Perhaps I'm being selfish but I would like to be able to enjoy my latter years too. And I'll do my utmost to see my children aren't burdened with debt before they even start out.

And no I'm not in fuel poverty. But we constantly get told the country has run out of money and some families are most definitely taking the hit. Have no hope of getting on the property ladder or saving any money for a rainy day.

And no I'm not one of them as we're in a fortunate position of getting paid pretty well for the grafting you told me to go and do!

Luckymummy

Not all of us with a final salary pension are in the situation you describe, i.e. live in a big fancy house, have umpteen holidays a year, etc.

I'm about to claim mine at age 58. I'd rather not be doing it yet, but I need to get my hands on the lump sum element to pay off the shortfall in the shitty endowment mortgage which is currently looking to be about £30k.

Then even when it's paid off and the shabby, small house is "secure", I'll then have to take out another mortgage to buy my EX out of his half, otherwise he'd have us out on the streets - me and two school-leavers who have only just started work and not in a position to pay rent or get a mortgage themselves. So my super-duper pension will just be spent on paying another mortgage for the next ten years, not on "umpteen" holidays. I'll be lucky if I ever have a holiday again.

We're not all on velvet, lots of us are just shuffling money around trying to make sure we're not homeless or destitute in our old age.

And we didn't all for for Brexit, or the Tories either.

It's about life choices. My parents invented serial marriage in the 60s/70s. I learnt the hard way about consequences of bad choices - emotionally and financially. I was always determined to have financial independence.

If people can afford it why shouldn't they have the holidays. Pensioners who have worked all their lives and who have been careful go with my blessing.

What I find shocking are the 30/40 something's remortgaging for cars and holidays to Disney. If anyone who does that dares whinge about pensioner poverty they need to think hard about the hole they have dug.

DP are both in our mid 50s, have worked all our lives, had no inheritances and are actually paying for extra carer hours for my FIL at the moment, as otherwise his quality of life would be extremely low.
We have had very very few benefits. When younger, if benefits were at the rate they are now, we would have had benefits to help, but not then.

Yes we bought a house. We also moved out of London 30 years ago as we could not afford to buy a house there. We moved somewhere cheap. We could not afford to buy anywhere near my in laws, and neither could other family members of the same age.

We will get a smaller state pension than people 10 years younger. State pensions have increased this year. Like many women, I was when younger paid less than men. I can remember starting work and all the men my age were given jobs that were higher paid than the jobs given women. It was automatic.

brasty I'm mid 50s. I was never paid less than a man.

brasty I'm mid 50s. I was never paid less than a man

How do you know that? You don't.

I know what my contemporaries were on in my 20s. I accept I could not have kept up with that career with small children without a nanny and a half. I didn't want that but gave up willingly because I wanted to be a mummy

Went back to work in the public sector. I know what I'm on compared to everyone else. I know who's got a special allowance or market supplement and who hasn't.

Everyone in the country in a similar job? I doubt that.