To think more should be done to make pensions good again

[catincornwall]

I've always been in education or employment my whole life, often working while studying or taking two jobs at a time.

I've now finally got a decent job, but the pensions have changed so much that I will be lucky to get £100 a week in retirement if I work until 70 (impossible in my job). Wages aren't going up at any more than inflation and rent takes 45% of my take home pay. Its hard to stay motivated to work for almost 30 more years to never own a home and have such a small pension that means I won't be able to do anything.

My parents didn't have any university education but were able to buy a large 4 bed detached on one normal wage in their early 20s and my dad retired at 53.

Am I really asking too much to be able to afford a tiny two up two down and be able to retire with money in my 60s?

I think you are BU to start yet another thread that will lead to antagonism between "those rich baby boomers who had everything so easy" and "those latte-drinking millennials who don't appreciate what they have".

Have you considered selling your phone and drinking less coffee?

One of the main issues with pensions which doesn’t seem to talked about enough is that they were meant to support people for a couple of years, not 30. When the state pension came in it was for 65 year olds, and the average male life expectancy was 62. Now people regularly live to 80 and even 90. Also one pensioner was supported by 5 working people paying taxes, now it’s 1 supported by 2. Soon it’ll be 2 pensioners per tax payer. The system simply can’t carry on as it was with an aging population living longer than ever.

My phone is a huwai that cost 60 quid and im on giff gaff for a tenner a month and never go to coffee shops.

I understand it isnt sensible to give pensions for 30 years. But it seems to be going from 30 years to next to no years. Why not somewhere inbetween like 10-15 years?

You will probably live into your nineties, at least. When pensions were first introduced the pension age was higher than the average age at which people died.

The point of a pension was to be for a few years when the individual was too physically exhausted to work anymore.

However many years do you think you should be retired? If you want to retire in your sixties that would be thirty years, which is probably nearly as long as you would have worked. That's fine but you need to then think about saving half your salary in order to pay for the retirement years.

A pension is a form of income smoothing. So you have x years and if you don't want to earn then you need to save.

I'm over 60 and have worked for 40 years. I'm not planning going on stopping any time soon. If you are in reasonable health there should be provision to continue working although people in certain jobs would need to be able to access different work as their energy levels and physical stamina decline.

I imagine the OP might find saving difficult if 45% of her income is going on rent.

I did fall out with my sister when I told her several years ago that retirement when you have years and years of life expectancy is unrealistic.

I understand it isnt sensible to give pensions for 30 years

You kind of don’t understand though, life expectancy is longer so retirement will either be longer or you’ll have to work later on in life.

There will be careers that happen when you’re younger and different jobs for older people.

Final salary pensions aren’t sustainable. State pensions aren’t going to improve without increasing taxes or cuts elsewhere. If employers are forced to contribute more, pay rises will be even more rare.

If you can think of a solution to all of that, write it down and pass it on to those who can do something about it.

The younger generation need to consider a career that is well paid and can be carried out into old age.

They also need to pay into a pension as early as possible. Maybe they will never own a home due to where they live.

And I do think they need to consider priorities - nobody needs a foreign holiday every year.

I very much doubt that pensions will be good again. They basically want us to work until we are ready to die.
Just think of all the millions of people who get cancer or other illnesses which mean they never get to collect their state pension or the money they have paid into it. Not even their surviving spouse/families are entitled to it! It just vanishes, back into the system!