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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

State pension AIBU

46 replies

ImSuchABigIdiot · 12/06/2018 19:48

I know that this is basically impossible to predict, but I’d be interested to hear your thoughts on this.

I’m in my mid-twenties and have recently started paying into a work pension.

I’m hoping that, by the time I reach pension age (which is currently set at 68), I’ll be able to claim a state pension as well as a work pension.

I know that my National Insurance payments should (in theory) contribute towards a state pension, but I’m not sure whether state pensions will exist then.

AIBU to ask whether you think state pensions will still be available in the years/decades to come?

OP posts:

unintentionalthreadkiller · 12/06/2018 20:42

I'm in my 30s. I wholly expect there to be no state pension, and a higher retirement age by the time I get there.

Original poster

ImSuchABigIdiot · 12/06/2018 21:48

I hate to tell you OP, but your NI contributions pay for the pensions of people claiming them today. Your NI contributions don't create your state pension.

Heratnumber7, Sorry, I should have worded that better I thought that 35 years of NI contributions allow people to claim a full state pension. So, by paying NI contributions, aren’t people (indirectly) building up their own state pension?

OP posts:

Unescorted · 12/06/2018 21:56

I am 47 and not relying on it.... Having said that as I have paid national insurance for the last 22 years for the specific reason of having a state pension I will be mightily fucked off if I don't get one. The first party to say they are removing the state pension will lose my vote. If they decide it is viable then they need to say people under a certain age don't have to pay NI.

travailtotravel · 12/06/2018 22:02

I'm 45 and will need it but probably won't get it until I am 70, and it won't pay for anything realistic. I'm basically screwed if DH and I divorce.

SueDunome · 12/06/2018 22:08

I think the Government's introduction of a Lifetime ISA and Help to Save Scheme, targeted at the young and introduced in April 2017, is the biggest indication yet that, sadly, the State Pension will not exist in 40/50 years' time.

AnnabelleLecter · 12/06/2018 22:11

There will always be a state pension imo. It's there to cover the basics. If you want a decent amount in retirement for a few luxuries or to retire early you need to have other investments.
When planning our retirement we've always thought of the state pension as extra funds to add to the pot rather than the main income.

NewYearNewMe18 · 12/06/2018 22:17

AIBU to ask whether you think state pensions will still be available in the years/decades to come?

Yes but, it will be 'privatised' ie your contributions will go into your pot - same as they do in Singapore.

The problem is todays worker pay for todays pensioners, it's a myth that "I've paid in so I should get out whats mine" - the welfare state doesn't work like that. The day the welfare state came in, it started paying out, so all those people of retirement age back in the 1940's immediately got a pension never having contributed.

I'm with the poster above, private pension schemes and property is the way to secure your old age.

Pleasegodgotosleep · 12/06/2018 22:18

Journalist?

Original poster

ImSuchABigIdiot · 12/06/2018 23:13

Why do you think this is a thread started by a journalist, Please? I’ve posted on here quite a few times before.

OP posts:

Original poster

ImSuchABigIdiot · 13/06/2018 19:00

Does anyone have any tips for how to live comfortably off a pension and how to earn that amount of money? Should I focus on saving extra money alongside my work pension?

OP posts:

BitchQueen90 · 13/06/2018 19:03

I don't expect to get a state pension. Can't currently afford to save for one either as a single parent and low earner. I'll just work until I drop

Original poster

ImSuchABigIdiot · 13/06/2018 19:06

I’ve heard that apparently £40,000 per year would be a comfortable annual pension to live off. Taking my work pension into account, I’d have to save £1000 a month (which is impossible) to get £40,000 annually when I’m retired.

OP posts:

BitchQueen90 · 13/06/2018 19:11

£40,000 annually? I personally wouldn't need anywhere near that much especially if I were mortgage free by then. I don't earn that now! I could live off a fairly small amount, I've got no chance of early retirement so by the time I do I doubt I'll be going off travelling or anything.

BitchQueen90 · 13/06/2018 19:12

Of course that's assuming I'm in good health!

mcqueencar · 13/06/2018 19:39

I’ve heard that apparently £40,000 per year would be a comfortable annual pension to live off

I never get three figures when plenty never ever earn 40k & should ideally have less outgoings in their old age.

mcqueencar · 13/06/2018 19:49

these!

ilovesooty · 13/06/2018 19:50

£40000?

Come on. There are loads of people who never get anywhere near earning that much in employment.

susej · 13/06/2018 19:58

What is the perfect amount to retire on?

CrawfordE · 13/06/2018 20:01

I certainly wouldn't count on it, I'm sure the qualifying age will rise considerably in that time at the very least. It's only a very small payout anyway however so I've made sure we have investments and property to support us in retirement.

BiteyShark · 13/06/2018 20:15

OP the amount you need to retire on will be dependant on your bills. I went through all the bills I expect I will have when I retire ignoring those that won't be applicable. Then I added contingency's for house repairs, general spending and some for annual holidays. Obviously my target income will be very different to other people's.

ClashCityRocker · 13/06/2018 20:29

I think it will still exist in a form.

I do however suspect the introduction of auto enrolment signifies a plan to reduce the overall amount you receive in real terms.

In a similar way that no one will say 'let's scrap the nhs' it will be death by the back door, perhaps.

The age will continue increasing - I'm thirty and will be surprised if its not heading towards 75-80 by the time I get to retirement age. When introduced, it wasn't intended to be paid for the best part of twenty years plus so I do see the need for that.

On the flip side, it may be that it is easier for people to work beyond the current retirement age in the future than it is now.

In theory we should be more au fait with technology than many pensioners currently are (although having said that, my 75 year old mil puts be to shame) and the rise of home working, zero hour contracts etc could work in favour for earning income to supplement pensions - perhaps in a similar way to how the gig economy has developed? Of course this will bring its own set of problems.

But yes, I think our idea of retirement (which is, I believe, a fairly modern concept in itself?) will need to alter for many of us..... And I don't currently consider the state pension in my retirement planning.

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